Ukraine has enough gas in storage facilities for this winter

, said the CEO of Naftogaz, Yuriy Vitrenko. Currently, there are almost 19 bln cubic meters of gas in storage. As of today, 10-15% of these volumes belong to non-residents, however, it can be sold here, if prices in our market are not lower than European prices. Vitrenko added, Ukrgazvydobuvannya now produces about 12.7-12.8 billion cubic meters of gas, and the population consumes about 13.4-13.6 billion cubic meters, depending on the temperature.

Cabinet appoints a new board of Naftogaz.

 The Cabinet of Ministers has elected Mauritius Kalugin, an adviser to the Chairman of the Board on gas production, to the Naftogaz’s board.  Other new members of the board include Vladislav Volovik, Advisor to the Chairman of the Board; Olena Boychenko, Director of Human Resources and Social Policy Naftogaz Group; and Roman Chumak, the Head of Treasury Operations and Treasury Department of the Naftogaz Group. According to RBC-Ukraine, the Cabinet of Ministers convened and dismissed three members of the NAC’s

Naftogaz CEO on the best guarantees for prolonging gas transit

 through Ukraine. According to Yuriy Vitrenko, “The best guarantee contracts with European companies.” He said that that negotiations on this issue organized by Germany will be held soon. He explained that Ukraine is not against the extension of the current contract with Russia for the transit of gas through Ukraine for another ten years, but this would not be the best guarantee for it.

Naftogaz’s CEO emphasizes Ukraine’s openness to supporting the involvement of international partners in the gas transmission system operator.

“We are ready to explore a consortium with European companies or American companies which would take on the role of operator. This is an idea that is attractive enough for Ukraine as well as potential European and American partners. But the prerequisite for such a consortium is the booking of Ukraine’s GTS capacities by European companies,” Vitrenko explains.

Major investments in energy efficiency for factories and apartment buildings could reduce by half Ukraine’s gas consumption during the 2020s,

said Vitaliy Shcherbenko, Naftogaz Director of Energy Efficiency, tells Den news site. This reduction could eliminate Ukraine’s need to import 10 bcm of gas every year, he says. Investments are needed in energy efficient boilers and insulation. Increasingly, EU and Scandinavian aid to Ukraine targets raising efficiency in Soviet-era buildings.

Concorde Capital’s Alexander Paraschiy writes:

“This development illustrates a strong political will to retain Vitrenko as Naftogaz CEO. That allows us to expect a Naftogaz Supervisory Board meeting to consider Vitrenko’s dismissal will not take place due to sabotage by the three board members appointed by the government…The situation once again shows that scandals and tensions between Vitrenko and some members of Naftogaz supervisory board are unavoidable, which promise nothing good for the company.”

Vitrenko accused the anti-corruption body of “selective justice,”

saying that Ukraine’s Cabinet controls Naftogaz, not the Energy Ministry. In a Naftogaz press release, he said that as acting Energy Minister for four months this year, he did not have the right to vote in Cabinet meetings. Vitrenko cited the case of Yevhen Kravtsov, who as shifted in 2017 from First Deputy Infrastructure Minister to CEO of Ukrzaliznytsia. The Infrastructure Ministry has direct control over the state railroad.

Yuriy Vitrenko, the new CEO of Naftogaz, says he welcomes foreign investors into Ukraine’s oil and gas sector.

From now on, Ukraine’s state-owned oil and gas company will not “crowd out” foreign energy companies, he promised during a US-Ukraine Business Council webinar yesterday. Speaking from Washington, Vitrenko, a Naftogaz veteran, said he was behind many of the post-Maidan, free market reforms adopted at the company. Edward Chow, a former US energy company executive and a panelist, welcomed the 44-year-old Vitrenko, saying: “You have been preparing all your life for this job.”

Naftogaz CEO Yuriy Vitrenko met yesterday in Washington with key US Congress members to argue for sanctions to block the opening of the Russia-Germany Nord Stream 2 gas pipeline

. Separately, US Secretary of State Antony Blinken told the House Foreign Affairs Committee Monday that the Administration is talking to Germany about reimbursing Ukraine for lost transit fees and about establishing a pipeline cutoff mechanism if Russia moves against Ukraine. “I think it is necessary to ensure that the transit fee that Ukraine may at some point in the future lose as a result gas pipeline…was reimbursed,” Blinken said, according to Radio Free Europe.

Yulia Svyridenko, Deputy Presidential Chief of staff,

 has been chosen by the Cabinet of Ministers to represent the government on the Naftogaz Supervisory Board. She succeeds Robert Bensh, a Houston oil and gas executive. At the same Cabinet session, three foreign members were reelected for new, 1-year terms: Clare Spottiswoode (Britain), Bruno Lesqua (France) and Ludo Van der Heyden (Belgium), as well as two Ukrainian state representatives: Natalia Boyko and Yulia Kovaliv.

The Black Sea seismic program is to start this summer and the 4-member Executive Board is to remain in place through the end of this year

, according to a copy of the ‘Joint Roadmap’ obtained by the UBN. At yesterday’s Cabinet meeting Prime Minister Shmygal wrote on Telegram that the government would start an independent search process for a new CEO and Supervisory Board for Naftogaz. It is not known if the search will include Kobolev, a former Naftogaz executive director.

Firing by the Cabinet “contradicts the requirements of Ukrainian law,

” reads a letter signed yesterday by members of the Naftogaz Supervisory Board. Noting that the Board has power over personnel decisions, the letter charges that the Cabinet’s move “seriously jeopardizes the business continuity of the Naftogaz Group, as well as the implementation of the corporate governance reform in the public sector of Ukraine’s economy.” Written during the Board’s 2-day suspension, the letter is signed by Clare Spottiswoode as “Ex-Chair of the Supervisory Board.”

Naftogaz veered from a $93 million profit in 2019 to a $685 million loss in 2020

, the state oil and gas company reported. Naftogaz CEO Andriy Kobolev said the company turned a net profit during the first quarter of this year. “The company bottomed out and started generating profit,” declining to go into details. He said the company might seek to place a Eurobond, noting: “We now believe that the borrowing market for Naftogaz is very positive and attractive.”