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STRATEGY OVERVIEW

CREATING AN EFFECTIVE GAS MARKET BASED ON EUROPEAN BEST PRACTICES

SECURITY OF SUPPLY: DIVERSIFICATION, INTEGRATION WITH THE EU, RELATIONS WITH RUSSIA

OPERATIONAL EFFICIENCY: RAISING TRANSPARENCY, CURBING CORRUPTION, IMPROVING FINANCIAL POSITION

GAS INDEPENDENCE FOR UKRAINE

LIBERALIZATION OF GAS PRICES COUPLED WITH EFFICIENT DIRECT SUBSIDIES SYSTEM

CORPORATE GOVERNANCE REFORM


Split Naftogaz in accordance with the new gas market law, establishing an independent gas transmission system operator (TSO) and ensure that all market participants have equal and transparent access to the gas transmission capacities

Ensure the implementation of other provisions of the new gas market law Encourage price liberalization, liquidity and unobstructed competition in all segments of the market that are not natural monopolies

Assist in reforming the system of protecting vulnerable consumers

Ensure reliable gas supply to Ukrainian consumers and uninterrupted gas transmission across Ukraine to other European countries

Defend the interests of Naftogaz in litigation with Gazprom: bring the current contracts in line with relevant legislation and receive compensations for excessive gas payments and lost revenue from gas transit

Ensure integration with the EU gas market through political, legislative, infrastructural and marketing processes

Attract partners to manage the gas transit system and underground gas storage facilities on conditions optimal for Ukraine

Optimize internal business processes, eliminate potentially corrupt practices Support the corporate governance reform and other legislative changes necessary to create efficient and sustainable business models in Naftogaz and group companies

Maintain the highest possible level of gas production by the group until retail gas prices are liberalized Develop and initiate a program of replacing obsolete heating systems for consumers which use gas the least efficiently

Create opportunities to diversify transmission routes and sources of imported gas

Introduce new transparency standards, regularly disclose financial and operating information, encourage independent analysis

Review and bring to order the company’s accounts receivable and accounts payable

Develop an investment program to maximize gas production following price liberalization

Encourage the use of alternative sources of gas

Develop and implement an action plan to reduce gas consumption within the group


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