“Naftogaz” Wants to Sell 49% of the Ukrainian Gas Transit System to a Western “Partner” for $7 Billion

Translated by Ollie Richardson & Angelina Siard



The national joint stock company Naftogaz of Ukraine” (NOK) considers as expedient the sale of 49% of the stocks of the operator of the Ukrainian gas transmission system to an international partner of Ukraine in order to guarantee the preservation of income from the transit of gas at the present level and after 2019, when the operation of the contract for the transit of gas between the NOK and the Gazprom company (Russia) ends.

This is stated in the letter of “Naftogaz” to the Prime Minister Vladimir Groisman, the text of which is at the disposal of “Ukranews”.

According to NOK, the cost of the entire equity stake is $14 billion, so 49% is $7 billion respectively.

“The cost of the gas transit system according to the authoritative international company is about $14 billion. Ukrainian legislation allows a qualified international partner to receive up to 49% in authorised capital of the operator of the gas transit system of Ukraine. If an international partner pays $7 billion for 49% of stocks in the gas transit system operator, then such an investment can be considered as a certain guarantee of preserving income from transit at the current level. Only a partnership that will directly aim to solve the strategic task of preserving a key transit role will correspond to the interests of Ukraine,” it is said in the document.

In this regard, “Naftogaz” asks the Prime Minister to submit the strategic questions of national security stated above for the consideration of the National Security and Defense Council and to make a decision on the application of measures for their settlement.

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