Naftogaz Ukraine takes over Volyngaz, 17th gas distributor nationalized in 2023

MOSCOW. Oct 23 (Interfax) - Ukrainian regional gas distribution company Volyngaz has been taken over by the state and become part of Naftogaz Group, Ukrainian media reported, citing Naftogaz Ukraine.

"This is the 17th regional gas distribution company taken over by the state since the start of the year. The changes were due to the need to solve strategic energy problems concerning reliable protection of critical facilities, as well as the speedy restoration of infrastructure," the company said on Telegram.

Volyngaz distributes gas to 250,000 households and public sector organizations in Volyn region.

"Rates for distribution services and personal accounts for the region's residents remain unchanged. We will provide the details at a later date," Naftogaz said.

Naftogaz said that earlier it took over Vinnitsagaz, Dneprogaz, Dnepropetrovskgaz, Donetskoblgaz, Ivano-Frankovskgaz, Zhitomirgaz, Kievoblgaz, Krivorozhgaz, Kirovogradgaz, Lvovgaz, Nikolayevgaz, Sumygaz, Kharkovgorgaz, Kharkovgaz, Khmelnitskgaz and Cherkassygaz.

Ukraine's State Property Fund sold 16 stakes in municipal and regional gas distribution companies at privatization auctions in the fall of 2012, including Volyngaz, Nikolayevgaz, Sumygaz, Vinnitsagaz, Zhitomirgaz, Dnepropetrovskgaz and Ivano-Frankovskgaz, among others. Most of the gas distributors were acquired by Gaztek, a company Ukrainian media associate with businessman Dmitry Firtash that already owned stakes in these companies. Small stakes in another eight municipal and regional gas distributors were sold on the stock market later and purchased by Gaztek and Ukranet Financial Company LLC.