Ukraine has fallen into the clutches of cynical Naftogaz managers – Zemlyansky
From May 1, 2020, the market pricing mechanism in the gas end-consumer market within Ukraine comes into force, and no one knows what this will mean for consumers in the context of the continued monopoly of NJSC Naftogaz of Ukraine.
Energy expert Valentin Zemlyansky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“I don’t have an answer to how to solve the problem with gas prices after May 1. Today, there are no government initiatives or opportunities to compete with NJSC Naftogaz of Ukraine, which still occupies a monopoly position in all segments of the Ukrainian oil and gas sector.
It is in fact a monopolist in production, it is in fact a monopolist in gas imports, it de facto, despite the so-called unbundling, continues to control the main gas pipelines, respectively, the transit of gas through the territory of Ukraine, respectively, and the balancing of gas within Ukraine in its relations with all other players.
And at the same time, Kobolev has enough cynicism to come out with a blue eye and say: “so anyone can compete with us.” There is a monopolist who controls the entire market, and he says: come on, try to compete with me. You understand? In this case, Neftagaz can set the tariff that it considers economically feasible - for itself. Not for citizens of Ukraine. And no one from the Ukrainian authorities is even trying to object to the situation that will arise literally three months later, on May 1.
This was spelled out in Resolution No. 867 by Prime Minister Groysman in November 2018. This was agreed upon in a memorandum with the IMF. Ukraine committed itself to moving to a free market from May 1, 2020.
I don’t see any prerequisites for the fact that we won’t find ourselves in a situation of pure monopoly, when he will dictate terms to all consumers, that is, both the population and public energy companies,” the expert predicts.
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