ANALYSIS OF EFFICIENCY OF THE ECONOMIC ACTIVITY OF JSC “UKRTRANSGAZ” AFTER THE FIRST STAGE OF UNBUNDLING

1. ANALYSIS OF EFFICIENCY OF THE
ECONOMIC ACTIVITY OF JSC
“UKRTRANSGAZ” AFTER THE FIRST
STAGE OF UNBUNDLING
Kyiv, Ukraine 2018
Kyiv National Economic University named Vadym
Hetman
OKSANA GANTSEVA

2. Integration of Ukraine to the European
Gas Market
• 06/02/1998 - Ratification of Energy Charter Treaty and Protocol by Ukraine
• 01/02/2011 – Adjoining to the Treaty establishing the Energy Community
• Implementation of the 2nd Energy Package:
• 05.2015 - The Law of Ukraine “On natural gas market” had to provide the
following instruments:
Unbundling of TSOs Third Party Access
Transparent transportation
and storage tariffs 2

3. May, 2015 – Road map of gas market
reforms
July, 2016 – Plan of Naftogaz’s functions
unbundling
June 2018 – Resolution of Stockholm
arbitration
Foundation of the branch (without legal entity) of
Ukrtransgaz – “Operator of GTS of Ukraine”
Steps made by the Ukrainian government towards the unbundling and 3rd Energy
Package

4. -20000000
-10000000
0
10000000
20000000
30000000
40000000
50000000
60000000
9 months of 2015 9 months of 2016 9 months of 2017 9 months of 2018
Efficiency of economic activity of Ukrtransgaz and its managerial decisions in 2015 - 2018
Financial results Gross Revenue Aggregate costs
Analysis of the efficiency of Ukrtransgaz’s economic activity and managerial decisions

5. 0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2015 2016 2017 2018
Coefficients of financial stability of Ukrtransgaz in 2015-2018
Analysis of the coeficients of financial stability on the basis of the available financial
statements

6. Conclusions & Recommendations
On the basis of the analysis made we can make a conclusion that the governmental and shareholder’s
decisions on the company’s restructuring and reorganization have not been efficient and resulted in significantly
worsening of its financial results and, correspondently, financial stability.
Starting form 2016 when the Ukrainian government and Naftogaz of Ukraine started reorganization and change
of control steps the efficiency of the company’s activity has fallen significantly, its financial results reduced by
21,194,326 UAH or three times, its aggregate costs increased from 2015 to 2018 thirty times.
The coefficients of financial stability have been stable but we are convinced that this reassessment of the equity
capital has been made artificially and not supported by the real assets, so use of this coefficient for analyzing
here can not have representing nature
The equity capital declared in the financial statements analyzed is subject to the additional audit and
reassessment because it looks like artificial overassessment of the assets’ cost.

7. THANKS YOU FOR ATTENTION