Ukrainian regulator allows Naftogaz to take control of six power plants

MOSCOW. July 29 (Interfax) - Ukraine's Antimonopoly Committee has given the green light to transfer controlling stakes in six combined heat-and-power plants to national oil and gas company Naftogaz Ukraine.

The shares will be transferred on the condition that Naftogaz ensures the plants have access to a competitive fuel market.

Under a cabinet resolution on management of state assets dated August 11, 2021, Naftogaz will get stakes of more than 99% in the Severodonetsk, Odessa, Kryvyi Rih, Kherson, Mykolaiv, and Dnipro plants, which produce, transport and supply heating to customers within the bounds of connected heating networks. These plants also generate and supply electricity using natural gas as fuel.

Naftogaz told the regulator that it is prepared to assume obligations that will eliminate any potential negative impact that the consolidation of these stakes might have on competition. This is a condition for the transfer of the stakes in the plants.

The Ukrainian government approved a regulation on May 31 that imposes "special obligations on natural gas market entities to ensure public interests in the process of the functioning of the natural gas market as regards the particulars of its supplies to thermal energy producers." Special obligations were imposed on Naftogaz Group companies to supply natural gas to heating producers for the period to August 1, 2022.