Law-Now Ukraine
14.05.2012

On 13 April 2012 the Ukrainian Parliament adopted the Law “On Amendments to the Law of Ukraine “On Pipeline Transport” with Regard to the Reform of the Oil and GasComplex” (hereinafter – the “Law”), which became effective on 6 May 2012.

The Law was adopted as part of the implementation of the Protocol on the Accession of Ukraine to the Energy Community, as signed on 24 September 2010 and ratified on 15 December 2011 by Ukraine (hereinafter – the “Protocol”). The Law provides for the reorganisation of National Joint-Stock Company “Naftogaz of Ukraine”, an energy company entirely owned and run by the State which holds and manages the Ukrainiangas transportation system (hereinafter – “Naftogaz”).

In particular the Law allows:

1. the reorganisation (merger, accession, separation, spin-off, transformation) of any state-owned companies engaged in the storage and transportation of hydrocarbons through the national gas transportation system, including Naftogaz and its subsidiaries. This is subject to prior approval by the Cabinet of Ministers of Ukraine and to compliance with the national obligations as accepted by Ukraine under the Protocol.
2. the disposal of fixed assets by any state-owned companies engaged in the storage and transportation of hydrocarbons through the national gas transportation system, including Naftogaz and its subsidiaries. This is also subject to prior approval by the Cabinet of Ministers of Ukraine, provided, however, that such fixed assets are not used for the storage and transportation of hydrocarbons through the national gas transportation system.

The privatisation of any state-owned companies engaged in the storage and transportation of hydrocarbons through the national gas transportation system, including that of Naftogaz and its subsidiaries, is still prohibited, as is the privatisation of any legal entity resulting from the reorganisation of such storage and transportationcompanies pursuant to the Law.

Law: the Law of Ukraine “On Bringing Amendments to the Law of Ukraine “On Pipeline Transport” with Regard to Reform of the Oil and Gas Complex” dated13 April 2012, No 4658-VI.

For further information, please contact:

Olexander Martinenko
Ukraine
+380 44 391 33 77
View my CV

Vitaliy Radchenko
Ukraine
+380 44 391 33 77

Inna Antipova
Ukraine
+380 44 391 33 77

Law-Now is CMS Cameron McKenna's free online information service. To register for Law-Now, simply click and select the register link in the main navigation.

For further information about Law-Now, please contact our Law-Now Administrator:

Law-Now.Administrator@cms-cmck.com
Tel: +44 (0)20 7367 2586
Fax: +44 (0)20 7367 2000

Copyright (C) 2012 CMS Cameron McKenna LLP. All rights reserved. Information may be shared; however, reproduction in any medium requires our permission.

Disclaimer

CMS Cameron McKenna LLP is a limited liability partnership registered in England and Wales. It is able to provide international legal services to clients utilising, where appropriate, the services of its associated international offices and/or member firms of the CMS organisation. The associated international offices of CMS Cameron McKenna LLP are separate and distinct from it.

CMS Cameron McKenna LLP and its associated offices are members of the CMS organisation of major independent European law firms. The CMS organisation firms are legal entities which are separate and distinct from CMS Cameron McKenna LLP and its associated international offices.

Law-Now information is for general purposes and guidance only and does not purport to constitute legal or professional advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

Law-Now is a registered trademark.