Naftogaz resumes ownership of gas distribution networks

The Cabinet of Ministers of Ukraine decided to return gas distribution networks operated by regional gas companies, most of them controlled by Ukrainian businessman Dmytro Firtash, to the ownership of Ukraine's largest state-run energy holding Naftogaz Ukrainy, according to a government resolution from September 30, 2015.

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Thus, the Cabinet amended the resolution from August 20, 2012, which handed gas distribution networks to regional gas companies for a free-of-charge operational management.

Read alsoGazprom resumes gas supplies to Ukraine after receipt of advance paymentAs UNIAN reported earlier, in February 2015, a subsidiary of the National Joint-Stock Company Naftogaz Ukrainy, Gaz Ukrainy, filed a lawsuit to the Kyiv City District Administrative Court with a demand to cancel resolution of the Cabinet of Ministers No. 770 as of 2012, authorizing transfer of gas distribution networks to the regional gas companies for a free-of-charge operational management. According to the company, it was "absolutely inappropriate," as the latter had not invested anything in the infrastructure.

According to media, Dmytro Firtash’s business group controls more than 70% of all Ukrainian regional gas companies, as well as more than half of Ukraine's chemical industry.

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