In complying with IMF requirements, Ukraine Cabinet approves change of gas pipeline owner

The Cabinet of Ministers transferred a share in the authorized capital of the GTS Operator of Ukraine, which was owned by the company Main Gas Pipelines of Ukraine, to the Ministry of Energy, after a decision at a meeting on Friday, the government's representative in the Verkhovna Rada, Taras Melnychuk, announced.

"In accordance with the provisions of the law of Ukraine on optimizing the ownership structure of the operator of the gas transportation system of Ukraine, the Ministry of Energy has been transferred the authority to manage corporate rights belonging to the state in the authorized capital of the limited liability company Gas Transportation System Operator of Ukraine," he wrote on Telegram following today's meeting.

Corporate reform in the GTS Operator is one of the "beacons" of the International Monetary Fund.

By the end of July 2023, Ukraine had to transfer the corporate rights of the GTS Operator to the Ministry of Energy and adopt the new charter of the GTSOU, developed and agreed with the Secretariat of the Energy Community. By the end of October, the GTSOU supervisory board ought to be elected and appointed.

In July 2023, the Verkhovna Rada voted to liquidate the Main Gas Pipelines of Ukraine company as part of optimizing the ownership structure of the GTS Operator.

Last year, the Energy Community warned that Ukraine should reform the corporate governance of the GTS Operator of Ukraine to avoid re-certification.