Ukrainian Communists Oppose End to Naftogaz Privatization Ban

The Ukrainian Communist Party has called for Ukraine's gas transport system to remain a state holding.
 
Party leader Petro Symonenko was providing his comments on the government's draft law on the privatization of Ukraine's state oil and gas company Naftogaz Ukrainy.
 
Ukraine’s Council of Ministers has proposed a bill to lift a ban on the leasing or privatization of the gas transportation system that was implemented in April 2012.

Vice Prime Minister and Energy Minister Yuriy Boyko recently stated that Parliament needed to approve the lifting of a ban on the privatization of the gas transmission system in order to allow access to investment funds needed to undertake system upgrades.

Boyko said that the plan to privatize and spin off parts of Naftogaz was in line with unbundling requirements of the European Union’s Third Energy Package, and would help to increase transparency.

Ukraine also hopes to direct part of any capital from privatization for the repayment of loans to western creditors.

Russia and Ukraine have been locked in a series of disputes focused on natural gas pricing, payment and the future of the Ukranian transmission system through which a significant portion of Russian gas exports to Europe flows.

Russia has been posturing to take full control of Naftogaz and Ukrinform comments that the move to privatize Ukrtransgaz, the Naftogaz subsidiary that operates the transmission system, is seen by some analysts as a bid to attract Gazprom into a 50-50 joint venture, which if achieved, would ensure that Russia continues to use the Ukrainian system as a transit to the lucrative EU market while Ukraine continues to have a say in its operation.