Since November 1, 2021, the Ukrainian Energy Exchange, together with the Ukrtransgaz Gas Storage Operator, has opened the opportunity for customers of gas storage services in UGS to trade in two new products: natural gas stored in UGS under the customs regime “customs warehouse”, and natural gas stored in gas storages in the customs regime "customs warehouse" on the basis of simultaneous use of capacity with restrictions (short-haul).

Trading will be carried out in euros and in accordance with the UEEX Regulations. Both residents of Ukraine and non-residents who use the opportunity to store imported gas in the “Customs warehouse for up to 1095 days without paying customs duties and VAT, as well as buyers wishing to purchase gas in UGS, can take part in the auction.

A new common service from the Operator of Gas Storages and UEEX supplemented the option of exchange trading in customs cleared gas introduced in the spring on the UEEX within-day market. The new mechanism is somewhat different from those already proposed by the UEEX, since it provides for the preliminary blocking by the seller of the gas that becomes the property of the buyer only after full payment of its cost.

At the same time, the key advantages of the now expanded service remain: document circulation is minimized, trading goes online and attracts the widest possible range of participants. However, the most important advantage of the new service of the Operator and the UEEX is the safety of the bidders. The developed algorithm allows avoiding any risks associated with the transfer of gas or transfer of funds. It also warns the participation of unscrupulous counterparties with unconfirmed assets in trading operations.

At present, the systems of both companies involved in trading have already been tested, the functionality has been worked out, started accepting applications for accreditation from market participants (non-residents and residents) wishing to join the exchange trading procedure.

“We are pleased to present to our service customers a new, undoubtedly, long-awaited product, created by the teams of the Operator of Gas Storages and the Ukrainian Energy Exchange. It opens up a whole spectrum of possibilities: from facilitating and speeding up procedures to higher competition and, accordingly, better commercial offers. In today’s challenging market, this is more important than ever. We invite companies to undergo accreditation and join the auction. We have done our best to make the process as convenient, understandable and safe for you as possible,” - noted Serhii Pereloma, acting CEO of Ukrtransgaz.

“Today, for the first time, a service will be launched that will allow foreign traders to trade gas on the Ukrainian stock exchange. The Ukrainian market, Ukrainian gas storages and UEEX’s technical resources create an incredible potential for launching a powerful Ukrainian gas hub. We really hope that we are doing the necessary and timely things right now. Together with Ukrtransgaz, we remain open to proposals from the market in order to make our product more in demand,” - added Oleksii Dubovskyi, Chairman of the Exchange Committee of the Ukrainian Energy Exchange.