EC Supports Naftogaz Sell-Off, Says Ukrainian MP

A senior Ukrainian politician says the European Commission approves privatization of the national oil and gas company, Naftogaz.

Oleksandr Onyschenko, deputy chairman of the government's fuel and energy committee, was commenting on an international roundtable conference on the Ukrainian gas market that took place in Brussels last week.

"The European Commission is ready to actively support the modernization of the Ukrainian gas transport infrastructure. However, their role in the process will be limited to coordinating functions," Onyschenko said, reported by Ukrainian state radio.

At the same conference, Ukrainian Energy Minister Yuri Boyko said the EU was prepared to help with investment to increase the storage capacity of gas in his country to 50 billion cubic metres - nearly double its current capacity.

In the past EU officials have given their blessing to the takeover of the Ukrainian gas transit system by Russian interests. Three years ago, Energy Commissioner Gunther Oettinger said the decision was "between Moscow and Kiev".

Meanwhile, Petro Symonenko, leader of the Ukrainian Communist Party, says its stance is not opposed to an interstate gas holding. However the Communists say Ukraine's gas transport system (GTS) must remain public property.

"At the legislative level the Communists will support the establishment of this interstate holding, but we believe that the GTS should remain in public ownership, and it's necessary to formulate the conditions under which it will be part of other structures and where exactly it will work for the state," Symonenko told reporters in Kiev.

Asked whether the Communists would vote for the bill allowing the privatization of Naftogaz, Symonenko said they would decide after a thorough study of the bill.