The Verhovna Rada of Ukraine adopted the Draft Law No. 3176 on Amendments to the Law "On Public Procurement" for the purchase of natural gas as a basis. The adoption of the draft law as a whole will allow the GTS Operator to trade short-term standardized products on the platform of the CE Ukrainian Energy Exchange.
"The Ukrainian gas market is going through very important transformations to which we have been striving for over 10 years, working to improve the functioning of the Ukrainian gas market in accordance with the best European practices. GTS Operator’s access to exchange trading will be the key to market liberalization and guarantee the necessary liquidity for the future gas hub which we are working on today in cooperation with the government and international partners. We expect quick adoption of the draft law in a whole", - said the Chairman of the Exchange Committee of the Ukrainian Energy Exchange Oleksii Dubovskyi.
The legislative initiative will significantly increase the liquidity of the Ukrainian gas market and promote competition. The GTS Operator`s participation in the exchange trading will also allow to form an objective market basis for determining the marginal purchase and sale prices, will help to solve existing problems related to imbalances in the market.
"The GTS operator is entering a new stage of its development. Soon, the conflict of law that prevented GTSOU from participating in exchange trading to meet balancing needs will be outdated. Now we will be able to become a part of a consolidated and liberalized market that will ensure increased competition and fair price formation," – Sergey Makogon, General Director of GTSOU, commented.
The adoption of the law is a necessary step in the implementation of the Memorandum on the development of gas exchange in Ukraine on the basis of CE UEEX. The corresponding memorandum was concluded between the Ministry of Energy of Ukraine, Energy Community Secretariat, European Bank for Reconstruction and Development, GTS Operator and Ukrainian Energy Exchange.