On 19 June 2018, the National Commission for State Regulation of the Energy and Public Utilities Sector (“Regulator”) adopted Resolution No. 480 On approval of tariffs for storage (injection, withdrawal) of natural gas in the underground storages of JSC “Ukrtransgaz” dated 19 June 2018, which entered into force on 1 August 2018.

This Resolution amends the tariffs for storage of natural gas in Ukrainian underground facilities, and changes the price-calculation model from payment for volume to payment for booked capacity of natural gas for a specified period.

In particular, the Resolution changes gas storage prices in the following ways:

* Calculated according to the official National Bank of Ukraine exchange rate as of 10 August 2018.

In addition, the Resolution introduces increase of storage (injection withdrawal) tariffs for booking on a monthly and daily basis instead of annually. A coefficient of 1.1 will apply to booking on a monthly basis and 1.2 for booking on a daily basis.

The Resolution increases storage prices, and thereby contributes to the reform of the Ukrainian gas market and investment attractiveness of Ukrainian gas storage operator.