MGU supervisory board claims payment to Naftogaz for purchase of GTSOU impossible, asks govt to solve problem
The Supervisory Board of JSC Mahistralni Gazoprovody Ukrainy (MGU) has appealed to the Cabinet of Ministers of Ukraine with a proposal to start negotiations on amendments to the agreement on the purchase of Gas Transmission System Operator of Ukraine (GTSOU) LLC from NJSC Naftogaz Ukrainy.
The Supervisory Board recalled that MGU purchased a 100% share in the authorized capital of GTSOU from JSC Ukrtransgaz, with the terms providing for the initial payment and dynamic component of the price, valid for 15 years.
"The MGU Supervisory Board has repeatedly expressed our concern over the reasons for inclusion and the application of the dynamic component of the price and officially communicated our position. The effective Agreement makes it impossible to make installment payments to JSC Ukrtransgaz, and the necessary and sufficient investments into the modernization of the gas transmission system to fulfill the program approved by the Regulator (NEURC)," the company said in a statement.
The Supervisory Board of MGU addressed the Cabinet of Ministers of Ukraine regarding entering into the negotiations to seek possible ways of resolving these issues and amending the agreement.