Starting November 1, 2021, clients of the Storage System Operator of Ukraine can carry out trade operations with uncleared gas stored in the customs warehouse regime on the e-platform of the Ukrainian Energy Exchange (UEEX).
This is important, first of all, for non-resident companies, which traditionally use the opportunity to store gas imported to Ukraine for up to 1095 days without paying customs duties and VAT.
The new joint service from the Storage System Operator and UEEX complements the option of exchange trading with customs-cleared gas introduced this spring. Due to the peculiarities of working in a special customs regime, the algorithm of exchange trading is partially different from the mechanism previously used for customs-cleared gas.
“We are pleased to present to our customers a new, undoubtedly long-awaited product created by the teams of the Storage System Operator and the Ukrainian Energy Exchange,” said Sergiy Pereloma, acting general director of Ukrtransgaz. “It opens up a whole range of possibilities: from facilitating and speeding up procedures to higher competition and, consequently, better commercial offers. In today’s challenging market, this is more important than ever. We invite companies to pass accreditation and join the trading. We have done everything possible to make the process as convenient, clear and safe as possible for you.”
At the same time, the key benefits of the now expanded service remain: transactions are accelerated, document flow is minimised, bidding goes online and attracts the widest possible range of participants. However, the main advantage of the new service of the Operator and the Energy Exchange is the safety of participants. The developed algorithm avoids any risks associated with the transfer of gas or money. It also prevents unfair counterparts with unconfirmed assets from participating in trading.
“For the first time, we are launching a service that will allow foreign companies to trade gas on the Ukrainian exchange,” added the Chairman of the Exchange Committee of the Ukrainian Energy Exchange, Oleksii Dubovskyi. “Ukrainian market, Ukrainian gas storage facilities and UEB technical resources create the incredible potential for launching a powerful Ukrainian gas hub. Today we open the Ukrainian stock market for Europe. We very much hope that we are doing the right and timely things right now. Together with Ukrtransgaz, we remain open to offers from the market to make our product even more popular.”
Currently, the information systems of both operators involved in the auction have already been tested, the functionality has been worked out, applications for accreditation from market participants who wish to join the exchange trading procedure are now gathered.