Oil and gas JSC Naftogaz Ukraine to sell shares of its various companies

Oil and gas JSC Naftogaz Ukraine to sell shares of its various companies

The monopolist oil and gas JSC Naftogaz is undergoing restructuring for sale, announced Natalia Jaresko, the minister of finance

The government is in the final stage of restructuring and intensive auditing of the country’s monopolist Naftogaz, aiming at selling some of the assets and operations of Naftogaz.

As of present, JSC Naftogaz Ukraine carries operations in extraction industry of oil and gas in Ukraine via Ukrnafta, Ukrgazvydubuvannya, Chornomornaftogaz, Zakordonnaftogaz. The largest in Europe natural gas transportation system is under Naftogaz control directly or via companies, namely Ukrtransgaz, Ukrspectransgaz, Ukrnafta, Chernomornaftogaz. These companies are also involved in storage facilities projected at 31bn cubic meters, which accounts to 25% of total Europe’s capacity of gas storage. At this, Ukrautogaz company distributes products from refineries belonging to Naftogaz companies.

The energy sector has been under reforms in Ukraine, as energy consumption is 3-times less efficient compared to the world’s average. At this, 80 per cent of the country’s energy consumption comprised natural gas, back in 2014. Dependency upon Russian gas supplies and pricing had been huge. In 2015, Ukraine didn’t import gas from Russian Federation, noted finance ministry Natalia Jaresko. Instead, the government raised public utilities tariffs and lowered sums of subsidies for Naftogaz oil and gas monopoly. In so doing, the government looks after investments into energy sector for promoting of competition aiming at appropriate metering and pricing techniques on tariffs. Now, the company is operating more smoothly having received additional USD 1bn for gas storage facilities.

To remind, European Bank for Reconstruction and Development (EBRD), the Eastern Europe Energy Efficiency and Environment Partnership (E5P), and Swedish International Development Cooperation chose Megabank, OTP Bank and Ukrsibbank for the disbursal of EUR 75mln in the frames of public energy efficiency initiatives. At this, state Ukreximbank, Oschadbank and Ukrgazbank already participate in crediting program of energy efficiency projects. Ukraine owns the largest housing stocks in Europe (over 10 million building).

Related posts