Law No. 329-VIII On the natural gas market.

This Law defines the legal basis for the functioning of the natural gas market of Ukraine, based on the principles of free competition, proper protection of consumer rights and security of natural gas supply, as well as capable of integration with the natural gas markets of the States which are Parties to the Energy Community, including by creating regional natural gas markets. The natural gas market functions on the basis of the following principles: (a) safeguarding the high level of protection of rights and interests of natural gas consumers, including safeguarding of the first-hand interest of the security of natural gas supply, including through diversification of sources of natural gas supply; (b) free trade in natural gas and equal treatment of subjects of the natural gas market; (c) free choice of natural gas supplier; (d) equality in the right to carry out import and export of natural gas into/from Ukraine; (e) non-intrusion of the state into the functioning of the natural gas market with exception of cases when it is necessary for remedying market failures or safeguarding other general public interests provided that such interference is carried out in the minimum sufficient way; (f) safeguarding of equal rights of access to gas transmission systems, gas distribution systems, gas storages and the LNG facility; (g) prevention and remedy of restrictions to competition due to actions of subjects of the natural gas market, including subjects of natural monopolies and state-owned companies; (h) observance of the established technical norms and safety standards; (i) protection of the natural environment and rational use of energy resources; and (j) liability of subjects of the natural gas market for violations of rules governing activities on the natural gas market and contractual conditions. Prices on the natural gas market regulated by the state (in particular tariffs for natural gas transmission, distribution, storage (injection, offtake), and LNG facility services shall be: (a) non-discriminatory; (b) transparent; and (c) 3) established with consideration of requirements of gas transmission system integrity based on economically justified and transparent costs of the relevant subject of the natural gas market. The commercial activity on the natural gas market related to transmission, distribution, storage of natural gas, provision of LNG facility services, supply of natural gas shall be carried out based on a license. General public interests in the course of the natural gas market functioning shall include: (a) national security, as well as the security of natural gas supply; (b) stability, due quality and affordability of energy resources; (c) protection of the environment, including energy-efficiency, the increase of the share of energy from alternative sources, and reduction of greenhouse gas emissions; and (d) protection of health, life and property of the population. This Law contains VII Sections divided into 59 Articles. Section I lays down general provisions. Section II establishes principles of functioning of the natural gas market and the role of the state on the natural gas market. Section III establishes organizational and legal grounds of the natural gas market. Section IV regards access to gas transmission and gas distribution systems, gas storages, and the LNG facility. Section V establishes dispute settlement procedure. Section VI establishes responsibility of subjects of the natural gas market. Section VII lays down final and transitional provisions.