On 28 December 2016 the Cabinet of Ministers of Ukraine (CMU) adopted the List of Goods Import and Export of Which Are Subject to Licences and Quotas for 2017 (Resolution No 1009) and excluded natural gas and anthracite from the aforementioned list. As a result, the export of natural gas from Ukraine shall not be subject to licensing restrictions in 2017.

This represents an unexpected move for a country which is a net importer of natural gas. If it achieves its desired aims, the Resolution will mark a significant step towards the liberalisation of the natural gas market in Ukraine, enabling the flow of natural gas from EU countries with which Ukraine has interconnectors, and also from Ukraine to them.

Since 2006, the export of gas of Ukrainian origin has been heavily restricted by regulatory obstacles such as licensing (issued by the Ministry of Economy) and quotas (such quotas being determined on the basis of the Annual Gas Balance, usually equal to zero). As a result, Ukrainian gas producing companies (both state-owned and private ones) have not exported natural gas from Ukraine since 2011.

It should be noted, however, that due to Ukraine’s recent switch to a system of tariffs for entry/exit capacity at Ukraine’s gas interconnectors with neighbouring EU countries, exporters of natural gas from Ukraine are now required to pay the tariffs for using Ukraine’s gas system exit capacity at those interconnectors. Such tariffs are calculated and approved by the Ukrainian energy regulator (the National Commission on the State Regulation of the Energy and Public Utilities Sector) for each particular exit point in USD per 1,000 m3. At present, the relevant exit tariffs are only established only for a number of exit points and vary from 16.74 to 32.8 USD/1,000m3 depending on the exit point in question.

The list of exit points and relevant tariffs can be found at the TSO website.

LAW: CMU Resolution No 1009 “On Approval of the List of Goods Import and Export of Which Are Subject to Licences and Quotas for 2017” adopted on 28 December 2016