On Thursday, June 19,
the Prime Minister of Ukraine Arseniy Yatsenyuk presented to the Verkhovna Rada’s consideration two draft laws “On amendments to
certain laws of Ukraine on reforming of the management system in a Single gas
transportation system of Ukraine” and “On a special period in fuel and energy
While presenting a
bill on upgrade of the GTS management system the Head of Government reminded
that nowadays gas transportation via the territory of Ukraine to ensure the
needs of the European Union aren’t based upon a deal between Ukraine and the
EU, but are carried according to the deal between Naftogaz
and Gazprom: “We consider this scheme should be
changed and the point of pumping gas should be replaced from the western border
of Ukraine to the eastern one”.
Yatsenyuk stressed the need to adopt a decision on upgrade and joint exploitation
of Ukraine’s GTS. According to him, to stick to the obligations assumed by
Ukraine, being a country-signatory to the Energy Charter Treaty and a
participant of the European Energy Community and executing the Third Energy
Package, the Government suggests to adopt a number of decisions called to
create a new model of functioning the energy market.
In accordance with
the Governmental bill the Ukrainian GTS remains the state’s property. Ukrainian
gas storages will also remain in the state’s ownership. The Head of
Government emphasized, pursuant to the requirements of the Third Energy
Package there would be set up a company operator with a controlling stake
belonging exceptionally to the Ukrainian state.
According to him, exceptionally
gas transportation companies of the EU member countries can own 49 % of the abovementioned
company, however, they must be participants of the
European Energy Community, and the U.S.A. on conditions that such energy
companies have relevant certification.
During the discussion
the Head of Government suggests the decisions on attracting the investors to
the company-operator should be agreed in the Parliament: “We will come to the
Verkhovna Rada following approval of the law, bring those companies from the
EU and the U.S.A. winning public tenders, and vote for a decision in the
Parliament. The investors are interested in guarantees. The process of voting
in the Parliament for attraction investors is one more step for them to
invest more, for us to have cheaper loans and to ensure stability and
reliability of Ukrainian GTS”.
emphasized that backing this draft law would enable modernization and
investing into Ukrainian gas transportation system, improvement of capitalization
of Ukrainian GTS, which remains complete state property: “It will give a
chance to have new conditions of Russian natural gas transportation, to cease
erection of the South Stream and direct all the amounts planned to send through
the South Stream along the Ukrainian gas transportation system, as the EU member
countries will be particularly interested in that”.
The Head of
Government accentuated that the bill is a real step in forming Ukrainian
energy independency, “in adaptation of Ukraine with the requirements of the
European Union, drawing investors from the EU and the U.S.A. to Ukraine, and
directed to making Ukraine a transit country which cannot be ignored, which
guarantees flawless transit, which doesn’t subsidize Russian Gazprom, but earns and provides an opportunity to supply Europe
with gas and develop Ukrainian energy system”.
In the course of the
discussion in the Parliament Arseniy Yatsenyuk explained that capacity of
Ukrainian GTS makes up 140 billion cubic meters per annum: “We have used to
pump 122, now we pump 80. In case the South Stream is constructed, and it
will be constructed indeed, and in case the law isn’t supported, at most we
will swing 40-50 billion cubic meters of gas and consequently we will have to
subsidize transportation of the Russian gas from the budget. The arithmetic
is very simple and understandable”.
“The one who wishes
to turn the Ukrainian pipeline into scrap metal, to facilitate Russia in construction
of the South Stream, the one who opposes the fact that Ukraine is a key
transit country, won’t vote for the law. And the one who wishes that
Ukrainian GTS be earning, supplying gas to Europe, be upgraded, and to be a
player on the energy market, will support the document,” he said.
Arseniy Yatsenyuk emphasized
that the Governmental bill on a special period in fuel and energy complex is
aimed at “providing an opportunity for the executive authorities to manage
the energy market under extreme conditions in order to ensure people and enterprises
with minimal amounts, that will enable to keep the
The draft law stipulates
for an opportunity to introduce a special state on energy market in case
there is the threat to flawless energy supplies of Ukraine or the country
faces suspension of natural gas deliveries or any other energy products.
The PM informed in the
emergency situation in energy sector the Government receives the authority to
control over energy resources consumption and deliveries, “including
introducing special procedures such as purchase and selling, related to natural
gas and other energy products, including adopting sanctions”.
stressed the draft law contains that the entire gas extracted in Ukraine, on
condition of introducing the state of emergency, must be spent exclusively to
meet the needs of the population, on a Governmental decision.
“These two laws
appear the first real steps over the last 20 years leading to forming energy independence
of the country. The steps capable to ensure that Ukrainian energy and gas
transportation system could become a guarantor of flawless transit process and
generating incomes in the Ukrainian state,” Arseniy Yatsenyuk summed up.