Ukraine may lose the status of a gas transit country

The Cabinet endangers the future of Ukraine as a gas transit country, said in Energiasaastu.

The government’s plans to make PAO gas pipelines of Ukraine to the list of state-owned companies not subject to privatization, make it impossible to attract foreign investment in support and development of the gas transportation system of Ukraine. This is stated in the letter from the head of the Energy community Secretariat Janez kopacz in the name of Deputy Prime Minister-Minister Vladimir Kistion.

The document notes that the attraction of foreign investments in the gas transportation system was in fact blocked after the summer of this year, the Cabinet approved the draft law No. 6778, which proposed to amend the Law “On the list of state property objects not subject to privatization”.

“The bill proposes to include PJSC MSU in the list of enterprises not subject to privatization. Such inclusion actually means a ban on the sale of any stake MSU to a private investor,” – said in the letter.

Kopacz noted that the involvement of Ukraine’s partner for transportation of natural gas was clearly identified as meeting the strategic interests of our country.

“It would help Ukraine to position itself as a reliable partner in the European natural gas markets and to secure the future of the natural gas transit after 2019 (after the expiry of the contract between Naftogaz and the Russian Gazprom on the transit of Russian gas through the territory of Ukraine – ed.),” says Energiasaastu.

“By proposing to ban the sale of shares of the MSU to a third party, the bill effectively negates this opportunity,” the letter reads.

It also indicates that the Secretariat of the ES considers the recent steps of the government threat to the future of Ukraine as a transit country for natural gas to Europe.

“Unfortunately, the approval of bill No. 6778 not the only step. In recent years we have seen how the energy Ministry is actually trying to maintain control over assets for transport and storage in violation of the obligations of Ukraine according to the “Treaty establishing the Energy community”,” – said in the letter.

“We believe that at the moment, need to find a solution to this problem that would really meet the interests of Ukraine and not interests of individuals. The Secretariat will contribute to this decision. First of all, we demand the immediate withdrawal of the bill No. 6778”, – the statement says kopacz.

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