Today in the European Business Association a meeting was held with representatives of the Ukrainian Energy Exchange with the participation of the Head of the NERC and other representatives of the Commission, people’s deputies, representatives of the Ministry of Energy and Coal Industry, international profile and financial organizations, community of market experts and its immediate participants. The meeting was devoted to discussing the daily balancing natural gas market, which will be operational from August 1, 2018. Ukrainian Energy Exchange presented its Energy Trading Platform at the event to ensure a smooth transition to the launch of the daily balancing market.

Participants of the meeting discussed such important issues as the formation of national price benchmarks for natural gas, the importance of transparent market pricing and ensuring the implementation of the reform of the natural gas market in accordance with European legislation.

Main attention of those present was focused around the issue of delaying the introduction of the daily balancing market. However, absolutely everyone present, except for the representatives of NAK Naftogaz of Ukraine, supported the introduction of a competitive gas market designed to create a civilized gas market in Ukraine, to exclude the possibility of manipulation and artificial price overstating.

Chairman of the Exchange Committee Oleksii Dubovskyi, summarizing the results of the meeting, said: "I am very pleased with the results. Thank you for supporting regulators, authorities, market participants and the public. It is a pleasure to see that the community of specialists and experts understand the urgent need for market reform and see obvious benefits that will bring reforms to the state, business and, most importantly, the consumer.

From the very beginning of our activity, we aim to create an effective energy market in Ukraine, based on the best European experience and standards. In recent years, we demonstrate the dynamics of rapid growth, we have gained recognition of the market and got the support of its participants. Our main capital is the trust of our clients. Developed countries use exchange trading for short-term standardized products to balance the system without using the purchase of balancing services with the GTS Operator. Only exchange guarantees the performance of transactions, automatic clearing and risk management system, and I am announcing the readiness of the Ukrainian Energy Exchange to provide this. However, today we are presenting a system that is designed to prepare the Ukrainian market for new trading rules for us, but established in Europe. The purpose of this platform is to provide the market with a convenient service for the conclusion of transactions on the sale and purchase of natural gas on the over-the-counter market and the formation of internal price indications. The first thing that Ukraine needs to create a gas hub is a liquid exchange.".

Oleksii Lastovets, Deputy Chairman of the Exchange Committee, did not manage to demonstrate all the advantages of the Energy Trading Platform in action, but he invited everyone to familiarize with the system personally. The exchange provides such an opportunity. Oleksii Lastovets also said: "Prior to the introduction of daily balancing, we plan to launch the OTS system on a free basis with the goal of educating market participants in European practices of transactions. When the daily balancing market is introduced and there will be an opportunity to receive confirmation of the transfer of ownership, we will be able to launch trades with a guarantee of execution of transactions in full accordance with European practices. Participants will be able to obtain tools for managing price risks.".

The Energy Trading Platform, which was presented by the Ukrainian Energy Exchange, is part of an infrastructural exchange solution, similar ones work in the European energy markets. The system was developed for power products by a European vendor and finalized for the model of the Ukrainian natural gas market and the new GTS Code. The system will be integrated into the Ukrainian gas market completely free of charge for the participants and is designed to ensure a smooth transition to the launch of daily balancing in Ukraine. That is, for today the system will work with standardized contracts on the principle of a bilateral counter auction within the current model of the OTC market and will be supplemented by intraday contracts, day ahead contracts and monthly contracts within a few days after the entry of the Code into force. All market participants were able to assess the advantages of using the new platform, and market experts recognized that this is indeed a historic revolutionary step in the way of liberalizing the natural gas market.

The situation with gas pricing today is one of the most painful issues for Ukraine. In turn, Ukrainian Energy Exchange offers the only correct way out for Ukraine - creating its own competitive market and forming national price benchmarks on the Ukrainian exchange without binding to expensive foreign quotes.