15 May 2023, Monday, 10:18 186

Cabinet suggests Rada join Main Gas Pipelines of Ukraine to Ukraine's GTS Operator

Editor: Roman Vaniyan

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The Cabinet of Ministers has suggested that the Verkhovna Rada join the Mahistralni Gazoprovody Ukrainy [Main Gas Pipelines of Ukraine] joint-stock company to Ukraine's Gas Transmission System Operator.

This follows from a statement by the Ministry of Energy, the Ukrainian News agency reports.

It is noted that the approved draft law introduces an improved model of corporate management of the gas transportation system operator by joining it with MGU and offers a new model: Ministry of Energy - GTS Operator (with an independent supervisory board and a collegial executive body).

"All interested parties have reached a conceptual approach to corporate reform: a single company with 100% of the authorized capital in possession of the state in the person of an authorized body - the Ministry of Energy," the message reads.

According to the Minister of Energy Herman Halushchenko, the current model of work of the GTS Operator does not correspond to the guiding principles of the organization of economic cooperation and development regarding corporate governance at state-owned enterprises.

"This document is aimed at eliminating the complex management system of enterprises of the gas transportation system of Ukraine, taking into account the guiding principles of the Organization for Economic Cooperation and Development regarding corporate governance at state-owned enterprises. The corporate reform of the GTS Operator will strengthen the company's efficiency and give it a new impetus for development," he said.

As the Ukrainian News agency earlier reported, in April, the Supervisory Board of the MGU appointed Denys Fudashkin, the company's acting general director, instead of Oleksandr Lisnichenko.

Since January 1, 2020, the MGU company has been managing the GTS Operator of Ukraine state enterprise.

The length of the main gas pipelines of the network of the GTS Operator company is 33,080 km, and the carrying capacity is 281 billion cubic meters of gas per year at the entrance point and 146 billion cubic meters at the exit point.

GTS includes 57 compressor stations and 1,390 gas distribution stations.