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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of March 22, 2017 No. 187

About approval of the Regulations on assignment of special obligations on subjects of the natural gas market for providing public concerns in the course of functioning of the natural gas market

According to article 11 of the Law of Ukraine "About the natural gas market" the Cabinet of Ministers of Ukraine decides:

1. Approve Regulations on assignment of special obligations on subjects of the natural gas market for providing public concerns in the course of functioning of the natural gas market which is applied.

2. Provide to the Ministry of Energy and Coal Industry till the July 1, 2017 making of stipulated in Item 13 Provisions approved by this resolution, actions for calculation of the price of natural gas at the level of import parity and placement on own official site of information on such price and about some conditions of execution of special obligations which are assigned to subjects of the natural gas market.

3. This resolution becomes effective since April 1, 2017 and is effective till April 1, 2018.

Prime Minister of Ukraine

V. Groysman

Approved by the Resolution of the Cabinet of Ministers of Ukraine of March 22, 2017 No. 187

Regulations on assignment of special obligations on subjects of the natural gas market for providing public concerns in the course of functioning of the natural gas market

1. This Provision determines amount and conditions of execution of the special obligations assigned to subjects of the natural gas market for providing public concerns in the course of functioning of the natural gas market (further special obligations), including for ensuring stability, proper quality and availability of natural gas, maintenance of proper level of safety of its delivery to consumers, without creating threat of the first-priority purpose of creation of the full-fledged natural gas market based on the principles of free competition to observance of pro-rata rules, transparency and nondiscrimination.

This Provision:

it is applied by transparent and non-discriminatory method and shall not limit the rights of the subjects of managing created according to the legislation of other states parties of Energy Community, in particular the right to implementation of supply of natural gas to consumers on condition of observance of requirements of the legislation;

does not deprive of residential customers and producers of heat energy of the right to choose the supplier of natural gas and the right to acquire natural gas at the prices which are freely established by agreement parties of supply of natural gas as it is provided by the Law of Ukraine "About the natural gas market";

does not deprive of suppliers of natural gas, in particular with special obligations, it is right to elect freely the wholesale seller of natural gas for needs of their economic activity.

2. In this Provision terms are used in the value given in the Law of Ukraine "About the natural gas market".

3. This Provision assigns the following obligations:

1) the obligation of economic societies, 100 percent of shares (shares, shares) which belong to the state or other economic society which single shareholder is the state (PJSC Ukrgazdobycha, JSC GAO Chernomorneftegaz), to sell natural gas to economic society which single shareholder is the state (JSC National Joint Stock Company Naftogaz Ukrainy (further - NAK Naftogaz Ukrainy), and obligation of NAK Naftogaz Ukrainy to acquire such natural gas for forming of natural gas resource for residential customers, the religious organizations (except the amounts used for implementation of their production business activity) and producers of heat energy within production of heat energy for the purpose of provision of services on heating and hot water service to the population and the religious organizations (except amounts, used for implementation of their production business activity) on conditions and according to the procedure which are determined by this Provision;

2) obligation of NAK Naftogaz Ukrainy to sell natural gas to suppliers of natural gas for needs of residential customers and the religious organizations (except the amounts used for implementation of their production business activity) on conditions and according to the procedure which are determined by this Provision;

3) obligation of suppliers of natural gas who acquired natural gas at NAK Naftogaz Ukrainy according to this Provision to deliver such gas to residential customers and the religious organizations (except the amounts used for implementation of their production business activity) on conditions and according to the procedure which are determined by this Provision;

4) obligation of NAK Naftogaz Ukrainy to deliver natural gas to producers of heat energy for all categories of use of natural gas, including for production of electrical energy by such producers on conditions and according to the procedure which are determined by this Provision.

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