European Energy Community criticizes Ukraine’s latest steps in privatization sphere - media

The document says the attraction of foreign investment in Ukraine’s gas transmission system is being blocked by Cabinet-approved Bill No6778, proposing to amend the law "On the list of state-owned objects not subject to privatization," according to epravda.com.ua

“The Draft Law proposes including Public Joint Stock Company 'Magistralni Gazoprovody Ukrainy' in the list of State-owned entities that are not subject to privatisation. In practice, such inclusion would result in prohibition to sell any part of MGU’s shares, as currently fully owned by the State, to any third-party investor," the letter said.

Read alsoUkraine's government suggests excluding gas transport system from privatization listKopac notes that “possible involvement of third parties in the transmission of natural gas was explicitly envisaged as a response to Ukraine’s strategic interests of closer cooperation with its international partners in natural gas transportation activities, which would allow the country to position itself as a trusted partner in European natural gas markets and to establish a perspective for natural gas transit operations after 2019,” that is after the gas transit contract between Naftogaz and Russia’s Gazprom expires.

Kopac says this option “would effectively be ruled out by adopting the Draft Law which proposes the prohibition of the sale of MGU’s shares to any third-party investors.”