The Cabinet of Ministers of Ukraine transferred the gas distribution network to the National Joint Stock Company Naftogaz Ukrayiny (Naftogaz).
The Cabinet of Ministers of Ukraine had previously declared its intention to transfer the state gas distribution networks to Naftogaz in order to improve its financial condition and to monitor the gas supplies.
Currently, all of the 43 local gas distribution companies (so called "oblgazy" and "gorgazy") as well as Naftogaz subsidiaries - Gaz Ukrayiny, Ukrtransgaz, Ukrgazvydobuvannya and Chernomornaftogaz were entrusted with the transfer of the state gas distribution networks to a newly established subsidiary of Naftogaz - Naftogazmerezhi. As soon as it obtains a licence for the gas distribution and supply from the National Energy Regulation Commission, the gas distribution networks will be managed, maintained by Naftogazmerezhi and remain on its balance sheets.
Profits generated by the gas distribution networks shall also be owned by Naftogazmerezhi. Once received, those funds are to be invested in the construction of new gas distribution networks for provision of gas supplies to the remote districts.
Law: Resolution of the Cabinet of Ministers of Ukraine No 775 "On Enhancement of the Efficiency of the State Property Management with respect to the Gas Distribution Networks"
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The original publication date for this article was 27/08/2009.