Ukraine Set to Free Up Gas Markets

Ukraine will complete the liberalization of its gas market to European standards by 2014, according to the country's Deputy Minister of Energy and Coal, Volodymyr Makukha.

Ukraine intends to finish the restructuring of its gas monopoly Naftogaz and attribute the functions of gas extraction, storage, transporting, purchasing, and selling to independent entities, according to PR Newswire.

Makukha singled out the adoption of the law regulating the Ukrainian gas market as a significant development in the gas market liberalization. Ukrainian parliament voted in the law on the natural gas market in 2010.

The document corresponds with all 55 Directives of the EU, noted the state official. It brings Ukraine close to European standards and introduces clear and transparent rules for the functioning of the national gas market.

Historically, the Ukrainian gas market has been a state monopoly, the release notes. Naftogaz is responsible for the majority of transactions in the gas business. Ukraine aims to provide non-discriminatory access to its gas network and turn over the control of gas transportation and gas distribution to legally independent entities.