Naftogaz urges government to sell 49% stake in gas transit system

Naftogaz of Ukraine has sent a letter to PM Volodymyr
Groysman proposing that he initiate a sale of a 49% stake – out of the
govenment’s 100% total share – in operator of the nation’s gas transit system
(GTS), the Ukrainian News agency reported on Sept. 10. In the letter, Naftogaz
suggests that Groysman place the question of the possible sale before a meeting
of Ukraine’s National Security and Defense Council. 

Naftogaz estimated the 49% stake can be sold at USD 7
bln to a recognized international investor, and such an investment will serve
as a guarantee for preserving future revenue from gas transit services (recall,
the current gas transit contract between Naftogaz and Gazprom expires in
end-2019).

Alexander Paraschiy: A possible sale of a stake in the GTS operator will secure high FDI
inflow and improve the chances that Ukraine’s export proceeds from gas transit
services won’t plummet after 2020. Therefore, such a sale can serve as solid
support for the Ukrainian currency in the mid-term. So far, it’s hard to
estimate whether and when such a deal can happen.