DiXi Group Analysed Naftogaz’s Prospects

28 April 2016

DiXi Group think tank conduced a SWOT-analysis of the two Naftogaz unbundling models proposed by the Ministry of Energy and Coat Industry and Naftogaz itself.

On the basis of the available analytics, DiXi Group identified strengths and weaknesses of each model, as well as the opportunities and threats that they may bring. It should be noted that each has its advantages and disadvantages, making it a difficult and a very important dilemma for the government. Once it is solved, vectors of the further development of the gas market will be determined.

Unbundling of Naftogaz’s gas transmission and supply functions is a fundamental issue faced by Ukraine in connection with the implementation of the Third Energy Package and the Law “On the Natural Gas Market”. The process continues and causes disputes around which of the two competing models is more compliant with Directive 2009/73/EC and aims at further liberalization of the gas market in Ukraine.

These steps are expected to enhance competition in the market, stimulate foreign investments, and in the long run slow down the increase in prices for consumers.

This research was conducted by DiXi Group within the framework of the Ukrainian Think Tank Development Initiative implemented by the International Renaissance Foundation (IRF) in partnership with the Think Tank Fund (TTF) and funded by the Embassy of Sweden in Ukraine (SIDA).

 

The report on the results of this analysis can be downloaded here.

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