The Energy Community Secretariat after analyzing the national joint-stock company Naftogaz Ukrainy unbundling plan proposed by Ukraine's Energy and Coal Industry Ministry has recommended that public joint-stock company Ukrgazvydobuvannia remains with Naftogaz Ukrainy, Director of the Ukrainian Energy and Coal Industry Ministry's Planning and European Integration Department Mykhailo Bno-Airiian has said.

"The Secretariat believes that separating Ukrgazvydobuvannia from Naftogaz Ukrainy is a snap decision. It is viable and effective to leave Naftogaz in control over Ukrgazvydobuvannia," he wrote on his Facebook page.

He said that this recommendation is the own vision of the Energy Community Secretariat and it is not prescribed by law.

"The Secretariat clearly says in its analysis that the future of Ukrgazvydobuvannia is not subject to regulation by the EU Third Energy Package," the official said.

Bno-Airiian said that the Energy Community Secretariat backs the transfer of energy transportation assets (public joint-stock company Ukrtransgaz, national energy company Ukrenergo and public joint-stock company Ukrtransnafta) to management of the Energy and Coal Industry Ministry.

The Secretariat believes that the best way forward is to create a new systemic operator of the gas transport system (not part of Naftogaz Ukrainy), not the mechanic transfer of shares in Ukrtransgaz to another public agency.

"The Secretariat believes that the new gas transport system operator without old debts, histories of court lawsuits, old managers and non-profile assets and functions would have more opportunities in attracting a potential foreign investor," he said.

He said that the Secretariat believes the proposal of the ministry to retain the gas storage and transportation business within one operator meets European directives.

The Secretariat favors the legal and economic unbundling of these business directions as it would result in optimization of the service costs.

The Secretariat said that any removal of assets from Naftogaz will be implemented only after delivery of arbitration awards in ongoing arbitral proceedings between Naftogaz and Gazprom.