The Energy and Coal Industry Ministry of Ukraine has said that public joint-stock company Ukrgazvydobuvannia should be removed from ownership of national joint-stock company Naftogaz Ukrainy due to risk linked to the litigation between Naftogaz and Russia's Gazprom in the Arbitration Institute of the Stockholm Chamber of Commerce.

This is outlined in the proposals of the ministry to restructure Naftogaz Ukrainy posted on its website.

"Another key argument why the leader in gas production in Ukraine, Ukrgazvydobuvannia, should not be left in the management/ownership of Naftogaz Ukrainy, is the absence of clear understanding of the development of the situation with the hearing of a claim in the Arbitration Institute of the Stockholm Chamber of Commerce on the revision of gas transit contracts with OJSC Gazprom. If the court ruling is not in favor of Naftogaz Ukrainy, the company has a risk of losing some assets due to claims of creditors," the ministry said.

The ministry added that Ukrgazvydobuvannia is not protected by Ukrainian law in part of the ban to be privatized.