More than two years have passed since the Law “On the foundations of the functioning of the natural gas market” went into effect and there have yet to be any major reforms in the sector, experts say
More than two years have passed since the Law “On the foundations of the functioning of the natural gas market” went into effect and there have yet to be any major reforms in the sector. This was the conclusion expressed by experts from DiXi Group at the roundtable “Ukrainian Gas Market: Where are Reforms Leading?” held on October 8 in Kyiv. The event was sponsored by the European Program of the International Renaissance Foundation.
According to DiXi Group Program Manager Roman Nitsovych, several key elements are necessary for a free and competitive gas market. “There won’t be a full-fledged gas market if there is a monopoly. Unfortunately, we’re drifting away from the European model. On the one hand, we still haven’t seen a clear program for the restructuring of the current monopoly – Naftohaz of Ukraine, and on the other hand, we’re seeing privatization of local and regional gas companies to the benefit of one player,” the expert stressed.
In their analysis on the implementation of this law, the experts noted that steps taken by the government under the name of liberalization are not creating open and transparent rules of play on the market.
Changes that could bring Ukraine additional funds and attract western investors include increased competition and separation of gas production, distribution and supply. Experts also believe that a move to a single price for all categories of consumers is a sign of real reform.
Contacts:
DiXi Group
Roman Nitsovych
nitsovych@gmail.com
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The essential role of the European Program lies in promotion of Ukraine’s European integration, combining external pressure of the EU with the domestic one of the Ukrainian civil society, and thus contributing to promotion of open society values in Ukraine.
