RGC blames Naftogaz for discrimination and damage for UAH 40 billion

The authorities and the state-owned company Naftogaz of Ukraine NJSC consistently remove private companies from gas distribution process. Accumulated losses have reached UAH 40 billion, as reported in the message of Regional Gas Company Ltd.

RGC admits that since the beginning of 2014, the gas distribution industry has lost one-third of 70 thousand specialists. As stated in the report, Naftogaz loses its main financial source - the revenue from gas transit. This will either be due to unbundling, or because of the reduction of the transit itself. Private gas suppliers (traders) have already taken a significant part of the state monopoly in the market for commercial gas supplies: the share of Naftogaz has fallen from 84 per cent in 2014 to 12 per cent in 2018.

In the gas market for domestic consumers, Naftogaz holds 100 per cent as the wholesale supplier of the resource. Here is the largest volume of gas consumption in Ukraine, which is 16 billion cubic meters annually. In order to preserve the meaning of its existence, Naftogaz must definitely not only save, but also establish full monopoly control over this sector.

For the past five years, in the opinion of RGC, strengthening of the Naftogaz monopoly has led to losses to the gas distribution companies for a total amount of about UAH 40 billion.

The representatives of RGC believe that the damage was created artificially, through cooperation and interaction of the management of state monopoly with the highest level of executive authorities in the interest of Naftogaz only.

17:15 / 21 May 2019

Upcoming events
09:00 / 23 September, 2021
09:00 / 20 May, 2021
08:00 / 26 September, 2019
ODESA OFFSHORE CONFERENCE-2019 Ukraine has every chance to resume the work of the most promising oil and gas region, the Southern oil&gas fields. The untapped deposits of oil and gas are located both onshore and subsea. Four companies have already poised to conclude Production Sharing Agreements with Ukraine, whilst bidding for the Dolphin oil&gas fields on Black Sea shelf. The Odesa Offshore Conference (OOC2019) will serve as a venue for Ukrainian and international bidders to meet with local and international drilling, oilfield service and equipment manufacturers to kick-off emerging subsea and onshore projects in Ukraine.
ODESA OFFSHORE CONFERENCE-2019
All events