The energy community demands the abolition of Naftogaz's monopoly

naftogazThe Energy Community Secretariat insists that Ukraine immediately lift restrictions on the domestic natural gas market.

This was stated in a statement by the EC Secretariat.

"Cabinet of Ministers Resolutions No. 596 of November 7 and No. 647 of November 26, 2014, create preferences for state-owned Naftogaz and violate Energy Community legislation, and the Secretariat insists on their immediate repeal," the statement said.

As the EC notes, the Ukrainian government's actions contradict the Energy Community Treaty and the Association Agreement with the EU, and damage Ukraine's reputation as a reliable partner in gas transit.

"The Secretariat has prepared and submitted a gas bill to the Ukrainian authorities for consideration, including safeguard measures. This law, which is in line with the EU's Third Energy Package, should be adopted as soon as possible," the statement reads.

The ES emphasizes that it has a full understanding of Ukraine's political and financial problems, but any benefits for state-owned companies and the imposition of social obligations on private companies must be temporary, justified by public safety considerations, proportionate, and non-discriminatory.

The secretariat noted that the biggest problem in the gas sector is regulated energy prices, which are unacceptable.

As a reminder, the Energy Community criticized the Yatsenyuk government for returning Naftogaz's monopoly through Cabinet of Ministers Resolution No. 596.

With this resolution, the Cabinet of Ministers re-legalizes the monopoly of the state-owned company Naftogaz of Ukraine over the import and supply of natural gas into the country, without providing a proper explanation of the reasons for such interference in the market.

 

European truth

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