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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of March 6, 2022 No. 222

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

(as amended on 06-12-2022)

According to article 11 of the Law of Ukraine "About the natural gas market", to the Presidential decree of Ukraine of February 24, 2022  "About introduction of warlike situation in Ukraine" the Cabinet of Ministers of Ukraine decides No. 64:

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

2. To Department of Energy to prepare till March 15, 2022 the decision on modification of the Procedure for determination of compensation provided to subjects of the natural gas market to whom special obligations, No. 1194 approved by the resolution of the Cabinet of Ministers of Ukraine of December 3, 2020 (The Official Bulletin of Ukraine, 2020, No. 99, the Art. 3225) are assigned.

3. This resolution becomes effective since March 1, 2022 and is effective within six months after the termination or cancellation of warlike situation.

Prime Minister of Ukraine

D. Shmygal

Approved by the Resolution of the Cabinet of Ministers of Ukraine of March 6, 2022 No. 222

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 accomplishment 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), in particular, for ensuring stability, proper quality and availability of natural gas, maintenance of proper level of safety of its supply to consumers without 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.

2. This Provision:

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

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

3. In this Provision terms are used in the value given in the Law of Ukraine "About the natural gas market", the Rules of supply of natural gas approved by the resolution of NKREKP of September 30, 2015 No. 2496.

4. This Provision assigns special obligations:

1) on Gas Supplying Company Naftogaz Trading LLC - on ensuring realization of natural gas under contracts with suppliers of natural gas to residential customers on conditions, stipulated in Item the 5th this provision;

2) on Gas Supplying Company Naftogaz of Ukraine LLC - about sale of natural gas to operators of gas-distribution systems on conditions, stipulated in Item the 6th this provision;

3) on the subject of managing who performs functions of the supplier of "the last hope" (further - the supplier of "the last hope") - on ensuring supply of natural gas to certain consumers on conditions, stipulated in Item the 7th this provision;

4) on NAK Naftogaz Ukrainy - on providing Gas Supplying Company Naftogaz Trading LLC, Gas Supplying Company Naftogaz of Ukraine LLC, including as supplier of "the last hope", the natural gas resource necessary for ensuring accomplishment of special obligations according to this provision, on conditions, stipulated in Item the 8th this Provision;

5) on JSC Ukrgazdobycha and the State joint-stock company "Chernomorneftegaz" selling natural gas, and on HAK "Naftogaz of Ukraine" concerning forming of natural gas resource for residential customers and producers of heat energy by acquisition of such gas on conditions, stipulated in Item the 9th this provision;

6) on Gas Supplying Company Naftogaz Trading LLC - on supply of natural gas to thermal power plants and combined heat and power plants on the conditions provided by Items 8-1 and 8-2 of this provision.

5. From May 1, 2022 to April 30, 2023 (inclusive) Gas-supplying Company Naftogaz Trading LLC realizes natural gas to suppliers of natural gas in the amounts necessary for residential customers, deliveries to which such suppliers perform in the corresponding period of delivery, based on the agreement at the prices and on conditions according to appendix 1.

Gas-supplying Company Naftogaz Trading LLC and suppliers of natural gas shall by results of gas month (M) to the 11th day of gas month (M + 1) to correct gas sales amounts by change of trade notifications for reduction of the amounts of gas determined in trade notifications of every gas day (D) gas month (M) to the actual amounts of use of gas by the supplier of natural gas in the amounts necessary for residential customers, in the corresponding gas days (D) gas month (M).

6. Since June 1, 2022 and during action of warlike situation, and also within six months after its termination or cancellation of Gas-supplying Company Naftogaz of Ukraine LLC realizes natural gas to operators of gas-distribution systems in the amount of the normative, overtime losses and production and technological costs, losses caused by military operations and suffered in connection with prevention/settlement of humanitarian crisis situations based on the purchase and sale agreement of natural gas at the prices and on conditions according to appendix 2.

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