Within 18 months, Ukraine’s massive gas pipeline system is to be separated from Naftogaz and set up as a separate company, Magistralni Gazoprovody Ukrainy, or Trunk Gas Pipelines of Ukraine

Within 18 months, Ukraine’s massive gas pipeline system is to be separated from Naftogaz and set up as a separate company, Magistralni Gazoprovody Ukrainy, or Trunk Gas Pipelines of Ukraine, the supervisory boards of both companies agreed on Tuesday. Clare Spottiswoode, the British executive who chairs the Naftogaz Supervisory Board, said: “This is a critical milestone that will ensure Ukraine is in compliance with EU regulations, while guaranteeing Ukraine’s energy security and economic prosperity.” Gazprom’s gas supply contract with Naftogaz expires at the end of next year. Advised by PwC Poland, Ukraine is reviewing proposals by European energy companies interested in managing the pipeline and buying gas from Russia.