Ukraine to Put an End Rosukenergo's Monopoly

Russian gas monopoly Gazprom?s BOD approved yesterday the purchase of a 50-percent stake in Rosukrenergo from Gazprombank.

Rosukrenergo is the joint venture of Gazprom and Ukraine's Naftogaz. it is the only gas supplier of Ukraine.

The Ukrainian government, however, warned that the license for Rosukrenergo?s subsidiary to sell the gas had not been issued yet since the company had not presented bank guarantees for $300 million.

Ukrgaz-Energo, the joint venture of Switzerland-registered Rosukrenergo and Naftogaz Ukrainy, is set to start selling gas to Ukraine on March 1.

Yet, these plans may totally fall through, Kommersant Daily reported. Ukrainian Prime Minister Yury Ekhanurov pointed out late last week that Ukrgaz-Energo did not have the bank guarantees to sell the monthly gas supply from Rosukrenergo.

Meanwhile, Ukrainian authorities urged Gazprom to present the bank guarantees or transfer $75 million to the account of Ukrgaz-Energo. Gazprom declined to comment the situation yesterday.

Obviously, Ukrainian officials seek to put an end to the monopoly of Rosukrenergo on the gas supply to the country. Only 20 billion of 76 million cu. meters that Ukraine consumes annually is produced in the country. The remaining fuel will have to be bought from Rosukrenergo.