Comments - page 3

The decision of German regulatory authority, BNetzA, concerning the legal framework in which Nord Stream 2 can operate represents an interim victory of Ukraine.

Pricing in Ukraine’s retail market for petroleum products draws close attention from both consumers and public authorities. Telling facts in this sense are meetings of the President with representatives of filling station chains or the AMCU’s in-depth analysis of actions of petroleum products market participants, which the agency started in January of this year.

If implemented, the preliminary agreement of OPEC+ countries will allow to somewhat stabilize oil prices in the nearest few months, but it remains to be seen whether it will restore the balance of demand and supply in the market.

Back in 2016, the Verkhovna Rada of Ukraine passed the Environmental Impact Assessment Law. From the very beginning, the implementation of this legislative act has bumped into obstacles: the law was vetoed after an appeal by the Association of Pig Breeders of Ukraine, whose representatives believed that it would bring their industry to a standstill.

Today’s situation in the global oil market is a “perfect storm” for oil producing countries, but for countries importing petroleum products, it presents an opportunity to stock oil on the cheap.

On 1 May, Ukraine may become one step closer to a competitive gas market. At least, the government declared the intention not to prolong the Regulation on Placing Special Obligations (PSO) in the gas market, which regulates prices for households and heat generating companies.

Against the background of other states where the coronavirus pandemic is raging, restrictive measures in Ukraine are still not very severe, although the government has introduced the state of emergency. The transfer of the majority of personnel to remote work and the weakening of inspections surely pose risks for individual businesses, but the power system is stable. Therefore, the primary task for the government and the critical infrastructure operating companies still remains to protect workers and maintain process control.

Since January, Gas TSO of Ukraine LLC (GTSOU) has not only been separated from Naftogaz but has also launched a new short-haul service. Its essence is that European energy companies can reserve the capacity of the Ukrainian GTS for a “short” gas transit from one country to another.

Recently, the Ukrainian regulatory agency (NEURC) has approved the report on assessing conformity (sufficiency) of generating capacities, prepared by Ukrenergo NPC. This is an unordinary event indeed, because it was the first time when such a strategic document was approved. All of its previous versions starting from 2017 had the status of project.

The allocation of US 2.9 billion paid by Gazprom under Stockholm arbitration ruling to finance energy efficiency may become an excellent initiative.