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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of December 3, 2020 No. 1194

About approval of the Procedure for determination of compensation which is provided to subjects of the natural gas market to whom special obligations are assigned

(as amended of the Resolution of the Cabinet of Ministers of Ukraine of 24.06.2023 No. 628)

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

1. Approve the Procedure for determination of compensation which is provided to subjects of the natural gas market to whom special obligations which is applied are assigned.

2. To the public auditing service together with the Department of Energy, the National commission performing state regulation in spheres of power and utilities and the State Tax Administration according to the Procedure for conducting check by the working groups of the central executive bodies approved by the resolution of the Cabinet of Ministers of Ukraine of June 30, 2006 No. 886 (The Official Bulletin of Ukraine, 2006, No. 27, Art. 1935; 2007, No. 37, of the Art. 1453) to perform till July 1, 2021 compensation calculation to joint-stock company "The Naftogaz Ukrainy national company of the expenses which are not covered by the income performed for the purpose of execution of special obligations for providing public concerns in the course of functioning of the natural gas market and to report about results to the Cabinet of Ministers of Ukraine.

3. The public auditing service on representation of subjects of the natural gas market to whom based on the Law of Ukraine "About the natural gas market" special obligations for providing public concerns are assigned during functioning of the natural gas market to provide conducting check of calculation of compensation to subjects of the natural gas market to whom such special obligations, and also uncovered are assigned by the income of the expenses performed for the purpose of their accomplishment:

till August 1, 2023 - for the period execution of special obligations from March 1, 2022 to December 31, 2022;

till June 1, 2024 - for the period execution of special obligations from January 1, 2023 to December 31, 2023.

To inform the Cabinet of Ministers of Ukraine and the Department of Energy on results.

Prime Minister of Ukraine

D. Shmygal

Approved by the Resolution of the Cabinet of Ministers of Ukraine of December 3, 2020, No. 1194

Procedure for determination of compensation provided to subjects of the natural gas market to whom special obligations are assigned

1. This Procedure determines the mechanism of calculation of compensation provided to subjects of the natural gas market to whom according to the Law of Ukraine "About the natural gas market" special obligations for providing public concerns in the course of functioning of the natural gas market are assigned (further - compensation).

2. Calculations of compensation are carried out by the subject of the natural gas market which was carrying out special obligations on providing Gas Supplying Company LLC Naftogaz Trading" and also Gas Supplying Company LLC Naftogaz Ukrainy" including as supplier of" the last hope", the natural gas resource necessary for accomplishment of special obligations by them (further - the subject).

Provision of compensation is performed taking into account requirements of the budget legislation.

3. Compensation is calculated by the subject by the following formula:

To = Vr_ – Dr1 + Dr1 x Krp + ZD,

where K-compensation determined for calendar month in which the realization or supply of natural gas, one thousand hryvnias was enabled. Information on the monthly amount of compensation is specified to the subject in column 6 of the table of appendix 1;

Vr_ - economically reasonable expenses of the subject on acquisition of the imported natural gas which was implemented in month of realization which are calculated by the following formula:

Vr_ = Ts_ chorus і,

where Ts_ - the price of 1 thousand cubic meters of the imported natural gas taking into account rate for transportation services of natural gas for points of entry in gas-transport system of Ukraine which is calculated as weighted average price of the imported natural gas acquired by the subject during the period:

- from August 1 to October 31, 2021 and from January 1 to December 31, 2022, taking into account rate for transportation services of natural gas for points of entry in gas-transport system of Ukraine - for the purposes of calculation of compensation for the imported gas implemented by the subject in 2022;

- from January 1 to December 31, 2023, taking into account rate for transportation services of natural gas for points of entry in gas-transport system of Ukraine - for the purposes of calculation of compensation for the imported gas implemented by the subject in 2023;

Or_ - the total amount of realization by the subject in month of realization of the imported natural gas for Gas Supplying Company Naftogaz Trading LLC, and also Gas Supplying Company LLC Naftogaz Ukrainy", including as supplier of" the last hope", for accomplishment by them of special obligations, one million cubic meters.

Information on economically reasonable expenses of the subject on acquisition of the imported natural gas which was implemented in month of realization of the imported natural gas and amount of its realization by the subject are specified the last line of columns 7 and 6 of the table of appendix 2 respectively;

Other - total income from realization by the subject in settlement month of the imported natural gas for Gas Supplying Company LLC Naftogaz Trading", and also Gas Supplying Company LLC Naftogaz Ukrainy", including as supplier of" the last hope", for accomplishment by them of special obligations, one thousand hryvnias. Information on total income from realization of natural gas is specified the last line of column 7 of the table of appendix 3;

Krp - the coefficient of admissible profit level of subjects making 2 percent;

ZD - the total amount of change for settlement month of overdue receivables of consumers before Gas Supplying Company LLC Naftogaz Trading", and also Gas Supplying Company LLC Naftogaz Ukrainy", including as the supplier of" the last hope", for the natural gas implemented within accomplishment of special obligations by them. in the first month in which compensation is calculated the subject includes in compensation calculation the total amount of overdue debt for the beginning of the month following after month of realization. The relevant information is specified the last line of column 8 of the table of appendix 4.

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