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Ukraine rules out gas transport system privatization

Ukraine's Energy and Coal Industry Minister Yuriy Prodan says grid networks, high-voltage lines and the company Ukrenergo will also remain state-owned

© ITAR-TASS/Vitaly Grabar

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KIEV, July 10. /ITAR-TASS/. Ukraine’s gas transportation system and national power company Ukrenergo will not be privatized, Energy and Coal Industry Minister Yuriy Prodan said on Thursday.

“The gas transportation system will not be put up for privatization. The State Property Fund is currently dealing with this issue,” the minister said. “There are also grid networks, high-voltage lines and the company Ukrenergo. I believe that they should also remain state-owned,” he added.

The minister said all the other state energy companies could be privatized.

Ukraine’s parliament approved a draft law in broad outline on July 4 to reform the country’s Soviet-era gas transportation system and allow US and EU companies to be admitted to its management.

The bill envisages establishing Ukraine’s unified gas transportation system operator from among companies founded or owned by the state or companies in which the state owns no less than 51% of corporate rights or resident corporate entities of EU countries, the United States or the European Energy Commission.

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