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Ukrnafta reclaims 2bn cu.m. of gas from state

Ten years ago, this volume of gas was supplied to households without the consent of Ukrnafta.

Ukrnafta reclaims 2bn cu.m. of gas from state
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On 3 June, an officer of the State Bailiff Service handed about 2bn cu.m. of gas over to Ukrnafta, the state-owned oil and gas company Naftohaz Ukrayiny said in a statement on 6 June.

The State Bailiff Service was acting on the ruling issued by the Economic Court of Kyiv in May 2014.

Meanwhile, Naftohaz insists the transfer was illegal.

"When drawing up the transfer act, the bailiff, in particular, violated the procedure of seizure of property, as he signed the certificate on the withdrawal of natural gas from underground gas storage facilities (which are mainly in the western part of Ukraine), while staying in the city of Kyiv, in front of Ukrtranshaz's central office," reads the statement.

The gas that Ukrnafta won back was extracted by the company in 2006. According to the legislation effective at the time, Ukrnafta was obliged to sell all marketable gas that has been produced domestically to Naftohaz at a price set by the state regulator. The gas had to be further supplied for household consumption.

After 2005, the management of Ukrnafta refused to sign contracts with Naftohaz, citing too low tariffs set by the national regulator. Eventually, the company has taken advantage of the fact that the contracts have not been signed, and ensured the return of its gas.

Ukraine owns 50% plus one share in PJSC Ukrnafta, managed by the state-owned company Naftohaz Ukrayiny. Despite the fact that the majority stake belongs to the state, Ukraine has no control over Ukrnafta as the company's management is loyal to Private. Littop Enterprises, Bridgemont Ventures and Bordo Managament own more than 40% in Ukrnafta.

Read also: Privat gears up for court battle against Ukraine

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