The Minister explained that the arbitration disputes between Naftogaz and Gazprom must be taken into account in the process
The model of Naftogaz of Ukraine NJSC’s unbundling is presently in the discussion phase, and it will be very close to the ownership unbundling (OU) model, Oleksii Orzhel, Minister of Energy and Environmental Protection said at the Naftogaz-Gazprom: Energy Security, Gas Transit and European Integration Conference.
"We believe that the model we are presently trying to implement is the ownership unbundling (OU). In our opinion, and we want to discuss it with our partners, it is extremely close to the real ownership unbundling," Mr. Orzhel said.
The Minister explained that the approaches to Naftogaz’s unbundling must be based on the premise of "specific economic interests" in light of the arbitration between Naftogaz and Gazprom. Mr. Orzhel said that this matter is not about operational control or owner’s control but about the pursuit of specific economic interests in light of arbitration proceedings.
He expressed the hope that the government will make decision regarding unbundling at its next meeting. "We are trying to find the right solution, and even before the trilateral talks commence on 19 September," the Minister said.
Naftogaz Executive Director Yurii Vitrenko added that his company is working, together with the government, on the new plan: "We are very happy that we are finally like a united team instead of endless quarrels". He also stressed that what’s at stake is Naftogaz’s demand to revise the transit tariff for $12 billion and Gazprom’s attempt to appeal the previous arbitration ruling.
It is worth reminding that the unbundling model was one of the biggest points of disagreement between the Groysman government and Naftogaz. The government insisted upon the ownership unbundling (OU) model, while Naftogaz wanted to implement the ISO (Independent System Operator) model.
After his appointment, Prime Minister Oleksii Honcharuk said that the unbundling model is being discussed.
Naftogaz of Ukraine NJSC holds state-owned oil and natural gas production, transmission, processing and sale assets. Naftogaz’s shareholder is the Cabinet of Ministers of Ukraine. In 2018, the company received UAH 13.6 billion in net profit.