Ukraine is one of the world’s leading energy transit countries, with large oil and gas pipeline networks that transport Russian and Caspian Sea oil and gas across its territory.
Naftogaz was created in February 1998, as by ordered of the government, is a dominant player in most subsectors of the oil and gas industry in Ukraine.
Naftogaz or NAK Naftogaz Ukrayiny is vertically integrated company which owns and operates Ukrainian natural gas and oil transportation pipeline nest and extracts most of the gas within Ukraine.
Until the beginning of 2006, Naftogaz of Ukraine also handled all gas imports into the country.
The gas crisis in the winter 2005-06, Russian briefly cut the gas supply for Ukraine’s use in a dispute over payments.
To resolve the dispute UkrGazEnergo was established, with an arrangement that it could by 34 bcm of gas in 2006 for RosUkrEnergo rising to 58 bcm per years starting in 2007.
This ended the previous arrangement whereby all gas brought in across the border went to Naftogaz, thereby breaking its distribution monopoly.
Ukraine's Naftogaz gas company
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