25 Oct 2023 17:46

Nationalized Chernigov gas distribution networks move under control of Naftogaz

MOSCOW. Oct 25 (Interfax) - JSC Chernigovgaz is now under the control of the Naftogaz group as part of the transfer of gas distribution enterprises under state control, Ukrainian media reported, citing an announcement by Naftogaz on their Telegram channel.

Chernigovgaz became the 18th enterprise to come under state control.

Chernigovgaz ensures gas delivery to almost 360,000 homes and regulates distribution to budgetary and religious organizations, industrial facilities and municipal heating enterprises.

Earlier it was reported that the group already included regional providers Vinnitsagaz, Dneprogaz, Dnepropetrovskgaz, Donetskoblgaz, Ivano-Frankovskgaz, Zhytomyrgaz, Kievoblgaz, Krivorozhgaz, Kirovogradgaz, Lvovgaz, Nikolayevgaz, Sumygaz, Kharkovgorgaz, Kharkovgaz, Khmelnitskgaz, Cherkassygaz and Volyngaz.

In the fall of 2012, Ukraine's State Property Fund sold 16 stakes in municipal and regional gas companies at privatization auctions, including Chernigovgaz, as well as Nikolayevgaz, Ivano-Frankovskgaz, Dnepropetrovskgaz, Sumygaz, Vinnitsagaz, Zhytomyrgaz and others. Most of the gas supply enterprises were acquired by a company called Gaztek, which Ukrainian media associate with businessman Dmitry Firtash and which already owned shares in these organizations. Then, small blocks of shares in another eight urban and regional gas companies were sold on stock exchanges (including a stake in Chernigovgaz); one of the buyers was Gaztek.

It was also reported that, in September 2022, Naftogaz registered Gas Distribution Networks of Ukraine (Gazseti) LLC, whose main activity is the distribution of gas through local pipelines.

In May 2022, at the request of the Ukraine's State Bureau of Investigation, the seized private corporate rights to 26 regional and urban gas distribution system operators were transferred to the management of ARMA (Ukraine's national agency for the identification, search and management of assets obtained from corruption and other crimes).