UOGA Beacons Further Operation and Co-opts New Participants

Friday, 16 Jun 2017

UOGA Beacons Further Operation and Co-opts New Participants

UOGA Beacons Further Operation and Co-opts New Participants

On June 15, the participants of UOGA (Ukrainian Oil&Gas Association) held a scheduled meeting.

The main issue of discussion was an agreement on the final version of the Code of Business Conduct and new text of the Memorandum with the Antimonopoly Committee considering the competitiveness development facilitation at petroleum market.

It bears reminding that the Code of Business Conduct should entrench principles and rules of business operations, based on statutory compliance, conscientious and respectful customer and personnel treatment, petroleum ecological quality standards improvement, business function statutory regulation development, and promote productive development of oil and gas industry in general. It is assumed that the document final version will be approved by the following meeting.

After few months of discussion, an issue on the signature of new Memorandum with the Antimonopoly Committee remains open. UOGA is convinced that the main development path of conscientious competition at the market is a similar, non‑discriminatory approach to all operators without exception, and entrepreneurship liberty facilitation. This is precisely why individual offers and formulations of the Committee, e.g. “the necessity of informational asymmetry elimination”, raise remarks and questions. The participants of the Association are still ready for active dialogue, but the decision to continue work on the document final version has been made.

Within further counteraction against counterfeit production and illegal petroleum import, the decision to enhance activities in this regard has been made. The working group will be created shortly to analyse the information, study foreign practices and develop the possible paths of question settlement with the use of legal, administrative and economic impact tools.

As a priority, the issue of counteraction against illegal filling stations remains open. By common consent, the participants of UOGA confirmed the intention to enlarge its footprint over those country regions, where the situation with retail shadow schemes raises concerns.

In addition, two new participants — Alliance-Ukraine Oil Company and Gaztron-Ukraine were co-opted into the Association at the working meeting. During consideration, the unblemished business reputation of companies and readiness to share principles of the Association were the key factors. There is no doubt that the largest industrial group of the country will enhance its positions to accept broad challenges at petroleum market by expanding a number of its members.

The next meeting of the Association is scheduled for the first half of August.

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