Requiem To Ukrhazprom

The requiem to Ukrhazprom was played in a major key, because both international financial organizations and such world giants as British Petroleum and Shell have long insisted on division of this largest Ukrainian enterprise, to separate extraction and sale functions. Now their dream has come true. Under a joint order from Derzhnaftohazprom (State Committee on the Oil and Gas Industry) and the Naftohaz Ukrainy (Oil & Gas of Ukraine) national company, all enterprises of Ukrhazprom are being passed to subsidiaries of Naftohaz Ukrainy - Ukrhazdobuvannia, Ukrtranshaz, and the Natural Gas of Ukraine Trading House.

All money from the sale of gas and transportation services will be transferred to the accounts of Naftohaz Ukrainy. Only time will tell if this was expedient. There is very strong opposition in Parliament. People's Deputy Stepan Khmara distributed an open letter, expressing his trepidation about possible disastrous effects of "presidential innovations in the gas market," in creating the Naftohaz Ukrainy monopoly."

Meanwhile, without going into detailed analysis, our experts point out that this action was carried out in blatant violation of Ukrainian law, which stipulates that only the shareholders have the right to liquidate a joint stock company. The decision will cost Naftohaz nothing, because it manages the 100% of Ukrhazprom, that belong to the state. The issue here is not only legal nihilism, although the court decision annulling the Ukrnaftohazprom order is well known. Our version is this: somebody is trying to prevent the revival of Ukrhazprom, camouflaged in juridical casuistry. And it is not at all clear whether these permanent upheavals of the natural gas sector will contribute to the Ukraine's supply of gas this extraordinarily severe winter.