Rada Passes Draft Law on Unbundling of Naftogaz
Splitting the national gas and oil company up would better align with EU rules and regulations
Unbundling of Naftogaz is the process of separation of the operator of the national gas transport system from the national oil and gas company. 260 people’s deputies voted to consider the law on the shortened procedure during the second reading.
According to the explanatory note, the law is needed to reform Ukraine’s natural gas and electricity market in order to achieve liberalization, efficiency, transparency and further integration with the European Union market.
The separation of the operator of the Ukrainian gas-transport system from Naftogaz plays a key role in Ukraine’s security, Chair of Naftogaz Andriy Koboliev believes.
“Gas transit secures over 3 billion dollars of revenue to the state budget yearly. The very existence of the vital for the EU gas pipeline system in our territory — is the part of our security system and the component for the deterrence against armed aggression. The Kremlin is seeking to bypass Ukraine as a transit country with the help of the Nord Stream 2 and deal away Ukraine after ‘in its own fashion.’ To prevent this plot we need maximum support from our European partners. Meaning, we have to play by European rules,” Kobolyev wrote on Facebook.