Cabinet instructs Energy Ministry to sign contracts with gas companies on state pipelines management

The Cabinet of Ministers of Ukraine has instructed the Energy and Coal Industry Ministry to sign contracts with regional gas supply and gasification companies on the management of state assets used in their license activities.

A relevant decision was stipulated in government decree No. 770 of August 20, 2012.

According to the document, the matter concerns state assets, used by regional gas companies for core production, being on their balance sheet and that are not subject to privatization.

In addition, the decree excludes distribution gas pipelines from the list of property, which is not subject to privatization and transferred for use to Naftogaz Ukrainy.

As reported, the State Property Fund intends in 2012 to put large state stakes in 20 regional gas companies up for sale through auctions. The smaller state stakes in another 22 regional gas companies will be put up for sale through the stock market.

At the same time, distribution gas networks operated by regional gas companies will remain in state ownership.