20 Dec 2023 10:10

Naftogaz Ukraine completes integration of nationalized gas distributors

MOSCOW. Dec 20 (Interfax) - Naftogaz Group has completed the planned integration of nationalized gas distribution companies, Ukrainian media reported citing Naftogaz.

Naftogaz took over management of four more gas distribution companies on Tuesday, including Tismennitsagaz and Korostyshevgaz, increasing the number of gas distributors folded into the state oil and gas group to 27.

"We have successfully completed the integration of regional and municipal gas [distributors] into the Naftogaz Group. This is a big responsibility for us, as the number of our customers has increased significantly. However, this step is necessary, because the stability of critical infrastructure depends on it [...],"CEO Alexei Chernyshev was quoted as saying in the press release.

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.