Government initiates corporate reform of GTS Operator as required by IMF programme
updatedAt a meeting on Friday, the government approved a draft law that would allow for the simplified liquidation of the Mahistralni Gazoprovody Ukrainy company, the sole owner of the Ukrainian GTS Operator, announced Taras Melnychuk, a representative of the Cabinet of Ministers in the parliament.
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"The bill defines a one-time special procedure for the corporate reform of the gas transmission system operator of Ukraine by merging JSC Mahistralni Gazoprovody Ukrainy with LLC Gas Transmission System Operator of Ukraine and is aimed at eliminating the complex management system of the gas transmission system enterprises of Ukraine," he wrote on Telegram.
JSC Mahistralni Gazoprovody Ukrainy was established at the end of 2016 to fulfill Ukraine's obligations under the Third Energy Package, which provided for the separation of natural gas transportation activities from its supply and production. MGU owns a 100% stake in the authorized capital of LLC GTS Operator of Ukraine, which is engaged in natural gas transportation.
The reform of the GTS Operator's corporate governance is one of Ukraine's commitments under the International Monetary Fund's loan program.
By July 2023, the corporate rights of the GTS Operator, which belong to the MGU, should be transferred to the Ministry of Energy (this is the structural beacon of the program), and by the end of October, the Supervisory Board of the GTS Operator should be elected and appointed.
Last year, the Energy Community warned that Ukraine should reform the corporate governance of the Ukrainian GTS Operator to avoid recertification.
In September 2022, a draft law on the merger of MGU with the GTS Operator was registered in the parliament.