Ukraine's state-run oil and gas company Naftogaz believes that the unbundling of its gas transmission services will not be technically possible before December 2019, when the current contracts with Russia's state-held company Gazprom expire. The singling out of its gas transmission assets will be impossible due to Gazprom's refusal to change the transit contract. This news threatens the European Commission's (EC) plans, according to which the unbundling process must be completed no later than 1 January 2020.
The EC insists on breaking up the Ukrainian national gas and oil monopoly of Naftogaz in order to separate the transmission activities from the supply and production units, in line with the Third Energy Package policies. For Ukraine, the unbundling of Naftogaz's monopoly is a key condition for securing loans and financing from the European Union (EU) and also for the modernisation of the Ukrainian gas transit system. The EU estimates that the future contracts between Naftogaz and Gazprom should be covered by a new and fully certified transmission system operator (TSO).
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