Press release
Kyiv, 10 April, 2015
Law №2250 defines legal background for natural gas market of Ukraine which is to be based on principles of free competition, adequate consumer protection and security of supply of natural gas, as well as its the ability to integrate into with markets of States Parties to the Energy Community.
It is necessary to distinguish two main stages of Ukrainian inclusion into the European natural gas market:
1. Formation of internal market of natural gas of Ukraine on the basis of supply and demand in which the state should perform only a supervisory role but not the regulatory.
2. Inclusion of Ukrainian market into Europe-wide market of natural gas.
Today, Ukraine is at the beginning of the first stage. Law №2250 adopted by the Verkhovna Rada of Ukraine on 9 April, 2015 is aimed at implementing the acts of European energy legislation, namely Directive 2009/73/EC concerning common rules for internal market of natural gas and abolition of Directive 2003/55/EC (the Second Energy Package); Regulation (EC) 715/2009 on conditions for access to natural gas transmission networks and which cancels Regulation (EC) 1775/2005; and Directive 2004/67/EC on the implementation of measures to ensure security of supply of natural gas.
Thus a new law complies with EU Third Energy Package, however to make it fully effective it is necessary to adopt other laws and regulations that are to establish real separation of operations as to production, storage, transportation and delivery of natural gas. Particular attention should be paid to the fact that the state company "Naftogaz of Ukraine" is a monopolist in the market as to production, transportation and gas trading in Ukraine.
The European Commission introduced the Third Energy Package in 2007. Ukraine signed the protocol of accession to the Energy Community in September 2010, having become a full member of this organization in February 2011. Also Ukraine took obligations as to implementation of the "Third Energy Package" into its national legislation.
LLC "Newfolk" - consulting company which provides marketing, information and consulting services for oil and gas mining and oil and gas service enterprises. www.newfolk.com.ua
Kyiv, 10 April, 2015
Law №2250 defines legal background for natural gas market of Ukraine which is to be based on principles of free competition, adequate consumer protection and security of supply of natural gas, as well as its the ability to integrate into with markets of States Parties to the Energy Community.
It is necessary to distinguish two main stages of Ukrainian inclusion into the European natural gas market:
1. Formation of internal market of natural gas of Ukraine on the basis of supply and demand in which the state should perform only a supervisory role but not the regulatory.
2. Inclusion of Ukrainian market into Europe-wide market of natural gas.
Today, Ukraine is at the beginning of the first stage. Law №2250 adopted by the Verkhovna Rada of Ukraine on 9 April, 2015 is aimed at implementing the acts of European energy legislation, namely Directive 2009/73/EC concerning common rules for internal market of natural gas and abolition of Directive 2003/55/EC (the Second Energy Package); Regulation (EC) 715/2009 on conditions for access to natural gas transmission networks and which cancels Regulation (EC) 1775/2005; and Directive 2004/67/EC on the implementation of measures to ensure security of supply of natural gas.
Thus a new law complies with EU Third Energy Package, however to make it fully effective it is necessary to adopt other laws and regulations that are to establish real separation of operations as to production, storage, transportation and delivery of natural gas. Particular attention should be paid to the fact that the state company "Naftogaz of Ukraine" is a monopolist in the market as to production, transportation and gas trading in Ukraine.
The European Commission introduced the Third Energy Package in 2007. Ukraine signed the protocol of accession to the Energy Community in September 2010, having become a full member of this organization in February 2011. Also Ukraine took obligations as to implementation of the "Third Energy Package" into its national legislation.
LLC "Newfolk" - consulting company which provides marketing, information and consulting services for oil and gas mining and oil and gas service enterprises. www.newfolk.com.ua
