The return of gas distribution networks to state control is a matter of national security - Galushchenko

The return of gas distribution networks to state control is a contribution to ensuring national security, noted Energy Minister of Ukraine Herman Galushchenko.

NEURC adopted a resolution according to which from July 1, 2023, the economic activity of natural gas distribution in the Kharkiv region will be carried out by the state company Gas Distribution Networks of Ukraine from the Naftogaz Group.

In June of this year, Gas Distribution Networks of Ukraine LLC received the relevant authority in Dnipro and the Dnipro district. Earlier, in these regions (Kharkiv, Dnipro, Dnipro district), private companies that were part of the RGC Group (Regional Gas Company) operated the ministry reports.

In November 2022, the Government adopted a decision on the renegotiation of contracts for the operation of state-owned gas distribution networks, which launched the process of returning state property to state control.

According to Herman Galushchenko, the key goal of this initiative is to ensure national security and reliable service to citizens in wartime conditions.

"After the privatization of regional gas companies, which took place more than 10 years ago, a number of problems arose in the field of gas supply. The distribution system was actually used free of charge. We have radically changed this approach. We are continuing to return property, which is critically needed in wartime, under state control. This is a matter of national security," said Herman Galushchenko.

The Ministry of Energy notes that the state company Gas Distribution Networks of Ukraine has already demonstrated the effectiveness of its activities. For the first time in a decade, the newly created company fully provided 100% of payments with the state and partner companies for the operation of state gas distribution networks.

During the first three months of operation, the company paid UAH 12.2 million for the operation of state gas distribution systems and their components, UAH 42.3 million to Naftogaz of Ukraine for gas that was used to cover production and technological losses, as well as UAH 2.5 million to the GTS Operator of Ukraine for gas transportation services.

The Ministry of Energy also draws attention to the fact that in the Kirovohrad Region, where Gas Distribution Networks of Ukraine operates, 3.74 million cubic meters of gas were saved in 1Q2023 due to the reduction of production and technological costs of gas.