The proposal suggests allowing foreign sales of about 15% of extraction volumes
Private gas extraction companies have approached the government with an initiative to restore partial exports of natural gas. The business sector proposes a mechanism for controlled supplies under martial law. This was reported by NV Business, according to the portal PromPolitInform.
Private extractors sent the official proposal to ease restrictions to Prime Minister Denys Shmyhal through the Ministry of Energy. Informal discussions regarding this initiative are currently ongoing within the government.
The ban on exporting gas from Ukraine has been in place since March 2022 under an order from the Ministry of Energy. The new proposal envisages creating a mechanism for so-called controlled exports.
Details of the proposed mechanism
Companies suggest being granted the right to sell up to 15% of their extraction volume from the previous month on foreign markets. Monthly limits would be approved by the Ministry of Energy of Ukraine.
All trading operations are planned to be conducted through the Ukrainian Energy Exchange. Export permits would only be granted to companies designated by the Ministry of Energy that obtain a license from the Ministry of Economy.
Domestic market priority and control
The Gas Transmission System Operator of Ukraine is expected to monitor the actual volumes of exported fuel. At the same time, transferring any unused monthly limit to the next period or accumulating it would be prohibited.
The state-owned company Naftogaz would hold a preemptive right to purchase the offered resource. Exporting abroad would only become possible if the state holding company declines to buy the fuel.
Illustrative photo: Majskij / CC BY-SA 4.0
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