The government’s plans to add Main Gas Pipelines of Ukraine PJSC to the list of state companies, which are not subject to privatization, make it impossible to attract foreign investments in the support and development of gas pipeline system of Ukraine, EP reports, as described in the letter of Head of Secretariat of Energy Community Janez Kopac to Vice Prime Minister Vladimir Kistion.

The document sets out that the attraction of foreign investments in gas pipeline system turned out to be actually blocked after this summer, the Cabinet of Ministers approved the draft law №6778, which proposes introducing amendments to the Law of Ukraine On List of State-Owned Properties, Which are not Subject to Privatization.

“The draft law proposes adding MGPU PJSC in the list of companies, which are not subject to privatization. Such inclusion actually means the ban on sale of any holding of MGPU’s shares to any private investor”, as described in the letter.

Kopac notes that Ukraine’s attraction of the partner to transportation of natural gas was clearly defined as compliant with strategic interests of our country.  

“It would help Ukraine to position itself as the reliable partner on the European natural gas markets and ensure a prospect of transit of natural gas after 2019 (after expiration of the contract between Naftogaz and Russia’s Gazprom for transit of Russian gas through Ukraine’s territory - EP)”, Energy Community states.

“Suggesting banning the sale of MGPU shares to third party, the draft law actually makes such possibility null”, the letter says.

It also sets out that EC Secretariat considers the last steps of the government for the future of Ukraine as the transiter of natural gas in Europe.

“Unfortunately, the approval of draft law №6778 is not the only step. Lately we have observed that the Ministry of Energy actually attempts to keep control over the assets of transportation and storage in violation of obligations of Ukraine under the Agreement on Creation of Energy Community”, the letter says.

“We consider that currently, we need to find solution of this problem, which would really meet interests of Ukraine, but not the interest of certain individuals. The Secretariat will promote approval of such decision. First of all, we demand immediate revocation of the draft law №6778”, as said in Kopac’s letter.

Main Gas Pipelines of Ukraine PJSC was created as the company, which should have taken over the functions of the operator of gas transportation system.

The Law on Natural Gas Market provides the opportunity of investor’s attraction to the operation and management of gas transportation system through holding “up to 49% shares of GPS operator”.