14:28 20.09.2017

Naftogaz unbundling to allow keeping gas transit across Ukraine after 2019

2 min read
Naftogaz unbundling to allow keeping gas transit across Ukraine after 2019

The European Union intends to do its best to retain the gas transit route across Ukraine after 2019, although it is waiting for progress in the unbundling of NJSC Naftogaz Ukrainy, Vice-President of the European Commission in charge of Energy Union Maros Sefcovic has said.

"Transit mechanisms highly depend on the position and approach of Ukrainian authorities, Naftogaz unbundling… It is very important to have a progress in unbundling for the future of Ukraine’s energy sector," he said in an interview with Interfax-Ukraine.

He said that the unbundling it should increase competitiveness, enhance the economy and improve the energy system capacities.

Sefcovic said that there are respected companies ready to closely work with Ukrainian partners such as NJSC Naftogaz Ukrainy and PJSC Ukrtransgaz on various gas transportation mechanisms to guarantee gas transit after 2019.

"I have said for several times that trilateral talks are the best solution of the dispute in the Stockholm Arbitration. These talks are possible if Ukraine is interested in them to guarantee future gas transportation in the best possible way," he said.

He recalled that early April 2017 NJSC Naftogaz Ukrainy, PJSC Ukrtransgaz, Snam (Italy) and Eustream (Slovakia) signed a memorandum of understanding aimed at jointly evaluating opportunities for collaboration in the operation and enhancement of the gas transport system (GTS) in Ukraine. He said that some other companies are interested to join the memorandum.

"A key component here is a progress in the Naftogaz's unbundling. We must understand how the final result of this process will look like. Afterwards, we can continue negotiations. I know about the interest in Ukrainian GTS management. And European Commission supports this process since we think that it will allow keeping the transit via Ukraine," Sefcovic said.

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