German Advisory Group Ukraine meets the Ukrainian Minister for Energy and Coal Mining
On January 30th 2017 the Ukrainian Minister for Energy and Coal Mining Nasalyk met the German Advisory Group (represented by our energy expert Georg Zachmann) and representatives of the Ukrainian NGO DiXi-Group to discuss the development of gas trading in Ukraine. Georg Zachmann presented a report prepared upon the request of the Ministry. The report outlines four challenges to develop a functioning gas wholesale market:
- Increase liquidity of the market by attracting competing supply sources and enabling more consumers to choose
- Remove remaining administrative barriers for trading
- Improve the framework to mitigate financial and counterparty risks
- Moderate a discussion between market participants to find a common trading platform
Minister Nasalyk thanked DiXi-Group and the German Advisory Group for their support. He concurred with the assessment that further reforms to the gas sector are needed to establish a transparent and reliable price signal and stressed that Ukraine is committed to develop a competitive gas market. Minister Nasalyk He argued that creating a functioning retail market and abolishing non-cash subsidies are crucial and that gas supply needs to become more competitive.