The Energy Community Secretariat requested clarification regarding the government's decision to suspend the open gas market
November 17, 2014
The recently adopted decision, the Cabinet re-legalized monopoly of state-owned company "Naftogaz of Ukraine" on the import and supply of natural gas in the country, without providing adequate explanation for the disastrous intervention in the market. Resolution is valid until February 28, 2015.
In a letter sent today by the Prime Minister of Ukraine Arseniy Yatsenyuk, head of the Secretariat Janez Kopacz made it clear that this Regulation is the major concern in the European energy community in terms of its compliance with the Energy Community Treaty. The Cabinet of Ministers proposed to provide the Secretariat with an explanation on the measures taken no later than 20 November 2014. "We were surprised by this opaque and unmotivated decision. Liberalization and the creation of an open gas market is one of the fundamental principles of the Energy Community. Despite the temporary regulations, it has the opposite effect and sends a bad signal in terms of market reforms. Ukraine should understand that to achieve their legitimate desire to secure their supply, it can only help with this goal proportional, rather than in the opposite direction to reform already undertaken in the past "- said Janez Kopacz.
Recall, on Friday, November 14, the seven largest independent gas companies appealed to the District Administrative Court of Kiev with a collective lawsuit against the Cabinet and "Naftogaz of Ukraine" to invalidate the decision of the Cabinet №596 and №599. These documents, the government radically changed the rules of the gas market, monopolizing it and stepped back from sales to industrial customers all private gas companies of Ukraine. As stated in the lawsuit of private gas companies, taking decisions, the Cabinet had exceeded its authority and carried out the illegal invasion of the activities of companies. Thus, the government had violated Article 6 of the Commercial Code, which prohibits any interference by public authorities and local governments and their officials in the economic relations.
In addition, the government has gone to violations of other laws regulating the work of private companies - the Civil Code, the Commercial Code, the Law of Ukraine "On the basis of functioning of the natural gas market", the Law of Ukraine "On Oil and Gas", the Code of Ukraine on mineral resources, the Law of Ukraine "protection of Economic Competition ", the Law of Ukraine" On the basis of state regulatory policy in the sphere of economic activity ", as well as the provisions of the Energy Charter Treaty and the Treaty establishing the Energy Community.
Cabinet went on to direct and violation of competition law. In particular, the Cabinet deliberately violated the injunction Part 3 of Article 18 of the Commercial Code, which stipulates that public authorities are prohibited to "adopt regulations and take actions that eliminate competition or unreasonably contribute to individual competitors in business or impose restrictions on the market."
oil-gas-energy.com.ua
According to the materials Energy-community.org
November 17, 2014