Ukrainian News Agency reported that the Cabinet of Ministers is asking the Verkhovna Rada to allow reorganizing the Naftohaz Ukrainy national joint stock company, draft law No. 9429 registered at the Parliament on November 8 reads.

The existing legislation forbids reorganization and privatization of state-owned trunk pipeline enterprises besides the cases when the reorganization and privatization will result in creating state-run enterprises with 100% of the shares in the state property of Ukraine.

The Cabinet of Ministers proposes to introduce a provision allowing reorganization based on a government decision. The government also wants to withdraw the provision prohibiting privatization and reorganization of trunk pipeline enterprises through fixed assets which are not used for transportation via pipelines and storage in underground facilities.

As Ukrainian News earlier reported, President Mr Viktor Yanukovych had tasked Prime Minister Mr Mykola Azarov with drafting a program for Naftohaz Ukrainy reorganization by October 1.

The Naftohaz Ukrainy reorganization is being conducted in respect to its accession to the European Energy Community and the need to adapt Ukraine legislation to that of the European Union on power engineering.

(Sourced from Ukrainian News Agency)