14 Nov 2023 10:20

Naftogaz Ukraine takes over Zakarpatgaz, 19th gas distributor nationalized in 2023

MOSCOW. Nov 14 (Interfax) - Ukrainian regional gas distribution company Zakarpatgaz has been taken over by state oil and gas group Naftogaz, Ukrainian media reported, citing Naftogaz Ukraine.

This is the 19th regional gas distribution company taken over by the state since the start of the year. Zakarpatgaz distributes gas to 278,000 households and over 4,000 legal entities.

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

Ukraine's State Property Fund sold 16 stakes in municipal and regional gas distribution companies at privatization auctions in the fall of 2012. 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 Gaztek was one of the buyers.

In May 2022, the seized private corporate rights at 26 regional and municipal gas distribution operators were put under the management of the Asset Recovery and Management Agency (ARMA) based on a motion filed by the State Investigations Bureau.

Naftogaz set up Gas Distribution Networks of Ukraine LLC (Gazmerezhi) in September 2022 to manage gas distribution through local pipelines and the Cabinet issued a resolution on November 25, 2022 to transfer state gas distribution networks to the new company.