Kiev Approves TSO, Ahead of Unbundling

Ukraine's energy regulator has provisionally certified Gas TSO of Ukraine (GTSOU) as a pipeline operator as defined by European Union law and will inform the European Union's Community Secretariat of its decision, it said November 25. The secretariat monitors countries on the fringes of the EU for compliance with EU regulations.

When it has receiving a confirmation from the secretariat, the regulator will be able to make the final decision that will allow GTSOU to start work as an independent TSO from January 1, 2020.

"All parties involved in the unbundling process in Ukraine have demonstrated that we are able to co-operate and carry out the most ambitious projects within tight time limits. There is still much work to be done, but we are committed to complete the unbundling process properly and in time," saidNaftogaz CEO Andriy Kobolyev.

GTSOU expects to receive the final certification as gas transmission system operator by the end of the current year. Starting from 1 January 2020, the company will be fully separated from Naftogaz group through a disposal to MGU LLC, which belongs to the finance ministry. Parliament is to ensure that the finance ministry is able to act independently when taking decisions related to the TSO.