You're reading: Law on reform of gas transport system fully in line with Ukraine’s liabilities in WTO

The law on the reform of the management system for the Ukrainian gas transport system (GTS) was drawn up in full compliance with the general agreement on trade with services and it does not violate Ukraine's liabilities as a part of the World Trade Organization (WTO), Ukrainian commissioner for European integration Valeriy Piatnytsky has said.

“As earlier, the Ukrainian gas transport system will remain under the jurisdiction of the state of Ukraine. The law defines the conditions for the gas transport system’s operator in a transparent way, and it does not restrict the access to the transportation services for all WTO members,” the press service of the Cabinet of Ministers said, citing Piatnytsky.

“The statements from some representatives of the Russian authorities and experts about alleged violations are groundless,” he said.

As reported, Ukraine plans to create two companies to service underground storage facilities and the gas transport system, with the participation of U.S. and European partners.

The document lifts restrictions on the leasing of trunk pipelines and underground storage facilities to a company/companies on a chargeable basis, without the right to fulfill the functions of the operator of the gas transport system and/or underground storage facilities.

The said leasing could be conducted only to execute liabilities taken by Ukraine in line with the law on the ratification of a protocol on Ukraine’s joining the agreement on the foundation of the Energy Community on the basis of the agreement and on the conditions approved by the Cabinet of Ministers of Ukraine, taking into account the principles of observing the economic security of the state.

The enterprise, the founder and owner of which could be only the state, state enterprise (at least 51 percent of corporate rights in state ownership) or a legal entity (legal entities), which belong to residents of the countries of the European Union, the United States or the European Energy Community and which is the operator of the gas transport system or a member of the European network of the gas transportation system operators certified in line with the requirements of Article 10 of 2009/73/EU Directive regarding general rules for the domestic natural gas market, could fulfill functions of the operator of the Ukrainian GTS.

The same conditions apply to the operator of the country’s underground storage facilities.