The tariffs for natural gas transmission services are determined by the NEURC Resolution No. 3013 of 24.12.2019 “On Establishing Tariffs for GTS Operator of Ukraine LLC for Natural Gas Transmission Services for Entry Points to and Exit Points from the Gas Transmission System for 2020-2024 Regulatory Period” as amended (by NEURC Resolution No. 1468 of 29.07.2020 “On Amendments to the NEURC Resolution No. 3013 of 24.12.2019”).

The following tariffs were in effect during 2024 as established by the NEURC Resolution No. 656 of 30.06.2022 “On Establishing Tariffs for Natural Gas Storage (Injection, Withdrawal) Services in Underground Gas Storage Facilities of Ukrtransgaz JSC”.

According to Resolutions of the NCRECP No. 1150 of June 24, 2020 and No. 656 of June 30, 2022 "On setting tariffs for natural gas storage (injection, extraction) services in underground gas storage facilities of JSC Ukrtransgaz" during 2022, the tariffs listed in the table below were in effect.

According to the Decree of the NCRECP dated June 24, 2020 No. 1150 "On setting tariffs for natural gas storage (injection, extraction) services in the underground gas storage facilities of Ukrtransgaz JSC, the following tariffs were established, which came into effect on July 1, 2020.

During 2020, tariffs for natural gas injection, storage and selection services were calculated in accordance with the Methodology for determining and calculating tariffs for natural gas storage (injection, selection) services for gas storage facilities to which the regime of regulated access is applied, approved by the Resolution of the NCRECP dated 13.06.2016 No. 1131.

The procedure for tariff formation was approved by the Resolution of the National Energy and Utilities Regulatory Commission (NEURC) dated 25 May 2017 No. 690 “On Approval of the Procedure for Forming Tariffs for Oil and Petroleum Products Transportation”.

Tariffs for oil transportation through the trunk pipelines of Ukrtransnafta JSC were established by NEURC Resolution No. 2108 dated 11 October 2019. The resolution provided for three stages of tariff application, the last of which covered the period from 01 November 2021 to 31 October 2022 inclusive. On 4 October 2022, NEURC decided to maintain the tariffs effective as of 31 October 2022 for the duration of martial law in Ukraine and for six months after its termination.

By Resolution No. 2280 dated 24 December 2024, the National Energy and Utilities Regulatory Commission (NEURC) established new tariffs for oil transportation through the trunk pipelines of Ukrtransnafta JSC for consumers in Ukraine, which entered into force on 1 January 2025. Tariffs for oil transit are not regulated and are set on the basis of contractual arrangements.

Tariffs for the transportation of oil through main pipelines of Ukrtransnafta JSC, which were in effect throughout 2021, were determined by the Resolution of the NEURC No. 2108 of October 11, 2019. The resolution determined two stages of tariffs: from 01.11.2020 to 31.10.2021 inclusive, and from 01.11.2021 to 31.11.2022 inclusive. However, in fact, the tariff for the transit of russian oil was increased to the level of 11.5 euros/t on April 1, 2022.

In 2020, the tariffs for the transportation of oil through the trunk pipelines of Ukrtransnafta JSC for consumers of Ukraine, established by Resolution of the NEURC dated 11.10.2019 No. 2108 for 6 trunk pipelines, were in effect. This resolution provided for two stages of the transition period of tariff changes in 2020: until October 31, 2020 and from November 1, 2020.

At the end of 2019, NEURC Resolution No. 3013 dated 24 December 2019 “On Establishing Tariffs for Natural Gas Transmission Services for Entry and Exit Points for Gas Transmission System Operator of Ukraine LLC for the Regulatory Period 2020-2024” was adopted. This Resolution remained unchanged and was effective from 1 January to 30 September 2020. Effective 1 October 2020, amendments were introduced pursuant to NEURC Resolution No. 1468 dated 29 July 2020 “On Amendments to NEURC Resolution No. 3013 dated 24 December 2019”. The amendments mainly concerned the coefficients reflecting the capacity booking period, which are applied to tariffs for natural gas transmission services for entry and exit points to/from the gas transmission system for the regulatory period 2020-2024.

Natural gas transportation services on the territory of Ukraine are provided by "Operator GTS of Ukraine" LLC, which since 2020 is a certified operator of the gas transportation system.

In 2024, transit volumes increased to 15.4 bcm, which is 24.6 bcm below the contracted volumes, but 5.5% higher than in 2023.

In 2023, the total transit volume decreased to 14.6 bcm, which is 25.4 bcm less than the contracted volume. Due to the failure of Gazprom JSC to fulfill its contractual obligations, Naftogaz of Ukraine NJSC filed a Request for Arbitration with the International Court of Arbitration at the International Chamber of Commerce and Industry in Paris.

In 2022, natural gas transit volumes amounted to 20.50 bcm, representing a 51% decrease compared to 2021 and a 63% decrease compared to 2020. As in previous years, the largest share of gas transit was directed to Slovakia (80.48%).

Since 2020, natural gas transit volumes through the territory of Ukraine had been declining. Russia’s military aggression against Ukraine resulted in an even more significant reduction in actual transit volumes in 2022, which fell by 63% and 51% compared to 2020 and 2021, respectively. At the same time, the valid agreement between Naftogaz of Ukraine NJSC and Gazprom JSC, signed on 30 December 2019, provides for the transit of at least 40 bcm of natural gas annually from 2021 to 2024. Under the contract, payment for the contracted volume of 40 bcm is guaranteed even if the actual transit volumes through Ukraine are lower. In 2021, the contracted volume was fully utilized, and an agreement was also reached on additional transit volumes of up to 4.4 bcm. In 2022, total transit amounted to 20.5 bcm, which was 19.5 bcm below the contracted volume. Due to Gazprom JSC failing to fulfil its contractual obligations, Naftogaz of Ukraine NJSC filed a Request for Arbitration with the International Court of Arbitration of the International Chamber of Commerce in Paris.

Gas transit through the networks of Gas Transmission System Operator of Ukraine LLC is carried out via two routes: the western route (Slovakia, Poland and Hungary) and the southern route (Romania and Moldova). Along the western route, 17.5 bcm of gas was transported to Slovakia and Poland, which is 54% lower than in 2021. No gas was transported to Hungary in 2022. Gas transit to Romania and Moldova through the networks of Gas Transmission System Operator of Ukraine LLC amounted to 2.9 bcm, which is 19% lower than in 2021.

In 2022, as a result of the occupation of Ukrainian territories by Russian forces, certain nodes of Ukraine’s gas transmission system experienced interference with technological processes and unauthorized withdrawals of natural gas. This forced the Gas Transmission System Operator of Ukraine LLC to temporarily suspend gas intake in the Luhansk region. After 11 May 2022, Russian gas transit was carried out exclusively through the Sudzha gas metering station (GMS) located on the border of the Sumy region. Gas Transmission System Operator of Ukraine LLC noted that rerouting gas flows from the Sokhranivka GMS to the Sudzha GMS was technically feasible.

During 2022, natural gas imports to Ukraine amounted to 1.5 bcm, which is 40% lower than in 2021. The sharp decline in imports was driven by the war in Ukraine, which resulted in a significant reduction in natural gas consumption in 2022. Substantial volumes of gas accumulated in underground gas storage facilities in previous periods, together with domestic production, covered a larger share of gas demand compared to 2021, thereby reducing import requirements. In 2022, natural gas was imported from Slovakia, Hungary, Poland and Romania. Of the total volume of imported natural gas, 56% (860 mcm) was imported into Ukrainian underground gas storage facilities under the customs warehouse regime.

In 2021, natural gas transit volumes amounted to 41.6 bcm, representing a 25.4% decrease compared to 2020 and a 53.6% decrease compared to 2019. As in 2020, the largest share of natural gas transit volumes was directed to Slovakia (65.87%). In 2021, natural gas imports to Ukraine totalled 2.6 bcm, of which 89% was imported using the virtual reverse flow mechanism. The largest volume of gas was imported from Hungary (2.2 bcm).

Natural gas transit volumes through the territory of Ukraine continued the decline that had started in 2020. This decrease was associated with the signing of a new transit agreement between Naftogaz of Ukraine NJSC and Gazprom PJSC, as well as the commissioning of TurkStream, which provides an alternative route for transporting Russian gas to Europe bypassing Ukraine’s gas transmission system. The agreement provides for the booking by Gazprom PJSC of transit capacity through Ukraine amounting to 65 bcm in 2020 and 40 bcm annually during 2021-2024. In addition, 4.4 bcm of capacity at entry points to Ukraine’s gas transmission system from the Russian direction was booked in 2021. Total gas transit volumes in 2021 amounted to 41.6 bcm, representing a 25.45% decrease compared to 2020 and a 53.57% decrease compared to 2019.

Gas transit through the networks of Gas Transmission System Operator of Ukraine LLC is carried out via two routes: the western route (Slovakia, Poland and Hungary) and the southern route (Romania and Moldova). In 2021, Gas Transmission System Operator of Ukraine LLC transported 38.0 bcm of gas via the western route, which was 26.78% lower than in 2020. Transit volumes via the southern route amounted to 3.6 bcm, representing a 7.69% decrease compared to 2020. The decline in gas transit volumes, particularly to Hungary and Romania, was associated with these countries switching to alternative gas supply routes bypassing Ukraine’s gas transmission system.

Throughout 2021, Gas Transmission System Operator of Ukraine LLC worked on expanding opportunities for natural gas imports into Ukraine. In particular, guaranteed daily capacity was agreed with the Romanian transmission system operator at the Isaccea/Orlivka interconnection point, subject to natural gas demand in Ukraine. As a result, import capacity was significantly expanded and the diversity of natural gas import sources increased. In 2021, natural gas imports to Ukraine amounted to 2.6 bcm, of which 89% was imported using the virtual reverse flow mechanism. Gas transportation services from the EU to Ukraine were booked by 50 traders, half of which were Ukrainian companies, while 29 companies used the short-haul and customs warehouse services. The largest volume of natural gas was imported from Hungary (2.2 bcm).

Since January 1, 2020, Gas Transmission System Operator of Ukraine LLC is a certified operator of the gas transportation system of Ukraine in accordance with the provisions of the Third Energy Package of the EU, the purpose of which is to create open gas and energy markets.

The sole shareholder of Gas Transmission System Operator of Ukraine LLC is Main gas pipelines of Ukraine JSC, directly subordinated to the Ministry of Finance of Ukraine. The entire gas infrastructure of Ukraine, including 33,000 km of pipelines, 57 compressor stations, 33 gas measuring stations and 1,389 gas distribution stations, has been transferred to the use of Gas Transmission System Operator of Ukraine LLC to carry out its activities.

In parallel with the creation of Gas Transmission System Operator of Ukraine LLC, a new agreement on the provision of services for the organization of natural gas transportation was signed through the territory of Ukraine between Naftogaz of Ukraine NJSC, Gas Transmission System Operator of Ukraine LLC and Gazprom PJSC. This agreement guarantees a new principle of payment for pre-ordered capacities, regardless of the actual volume of natural gas transportation. The agreement forms technical regulations and rules of mutual activity, fixes new conditions and annual capacity booking for gas transit, and also cancels any claims of previous agreements between the participants of the agreement. The agreement was signed for the period 2020-2024.

In 2020, the total volume of natural gas transportation through the territory of Ukraine decreased by 37.72% compared to the same figure in the previous year. At the same time, the actual volume of transportation was 55.8 bcm of natural gas, although the established agreement provided for an annual order for the transportation of natural gas in the amount of 65.0 bcm. The significant decrease in the annual volume of natural gas transit is connected, in particular, with the signing of a new agreement between Naftogaz of Ukraine NJSC, Gas Transmission System Operator of Ukraine LLC and Gazprom PJSC, the decrease in demand for natural gas in the EU, as well as the launch of new gas pipelines bypassing Ukraine.

In general, in 2020 there were two directions of natural gas transportation: southern (Romania and Moldova) and western (Poland, Slovakia and Hungary). In the southern direction, the volume of natural gas transportation through main pipelines was 3.9 bcm, which is 70% less compared to 2019. In the western direction, the decrease in transportation volumes reached 32% to the value of 51.9 bcm.

In 2020, 15.9 bcm were imported into Ukraine. m of natural gas, which is 12% more than the volume imported in the previous year. Slovakia, Hungary and Poland are among the main importers of natural gas to Ukraine. Compared to 2019, these countries increased the volume of natural gas transportation to Ukraine - in 2020 alone, imports from Slovakia amounted to 10.2 bcm (by 11% compared to the previous year), from Hungary - 4.2 bcm (14% more), from Poland - 1.5 bcm (3% more). This became possible thanks to the use of the virtual reverse mechanism, with the help of which 45% of the volume of natural gas was imported into Ukraine. Virtual reverse is a mechanism for mutual accounting and substitution of natural gas, which involves receiving and transferring natural gas between participating countries without physical movement of natural gas between participating countries.

During 2020, 52 Ukrainian and 30 foreign traders participated in the process of natural gas transportation.

As part of the organisational transformation of Naftogaz of Ukraine NJSC, a separate Natural Gas Storage Division responsible for the provision of natural gas storage services was established in December 2019.

Natural gas storage operations were carried out by the Gas Storage Operator of Ukraine Branch of Ukrtransgaz JSC. Following completion of the gas transmission unbundling reform, Ukrtransgaz JSC became the independent gas storage operator of Ukraine on 1 January 2020. Ukraine has 13 underground gas storage facilities (UGS facilities) with a total working gas storage capacity of 30.95 bcm.

Following completion of the gas transmission unbundling reform, Ukrtransgaz JSC became the independent gas storage operator of Ukraine on 1 January 2020. There are 12 underground gas storage facilities with a total working gas storage capacity of 30.95 bcm located in mainland Ukraine, and one storage facility located in Crimea. As of 1 January 2022, two UGS facilities were situated in temporarily occupied territories, and following the start of the full-scale invasion, the Krasnopopivske UGS facility also became affected. The Bilche-Volytsko-Uherske UGS facility is the largest underground gas storage facility in both Ukraine and Europe, with a storage capacity of 17 bcm of natural gas. According to Ukrtransgaz JSC, approximately 80% of Ukraine’s UGS capacity is located near the country’s western border, which has contributed to maintaining stable storage operations despite the war in eastern and southern Ukraine.

During 2020, the total volume of natural gas injected into Ukraine’s underground gas storage facilities amounted to 12.7 bcm, which was 3% lower than in the previous year. The total volume of natural gas withdrawn from storage decreased by 2% and amounted to 7.9 bcm.

In 2019, in addition to the transmission and distribution of imported and domestically produced natural gas to domestic consumers, Ukraine’s gas transmission system (GTS) continued to be used for the transit of russian natural gas to European markets.

During 2019, a number of final steps were taken towards the unbundling of natural gas transmission activities from Naftogaz of Ukraine NJSC. In September 2019, the unbundling model was selected and Gas Transmission System Operator of Ukraine LLC was designated as the entity entitled to apply for certification. Its sole shareholder is Main Gas Pipelines of Ukraine JSC, which is subordinated to the Ministry of Finance of Ukraine. Certification of the gas transmission system operator was completed in December 2019 following a positive opinion issued by the Energy Community Secretariat. Gas Transmission System Operator of Ukraine LLC received a licence to carry out natural gas transmission activities effective from 1 January 2020.

Another important reform of Ukraine’s natural gas market was the introduction of daily balancing in March 2019. This mechanism requires the gas transmission system operator to calculate positive or negative imbalances of natural gas transmission service users on a daily basis. The reform was intended to support the development of liquidity in the short-term wholesale gas market, including within-day natural gas trading. The transition to daily balancing was primarily aimed at implementing the provisions of Commission Regulation (EU) No 312/2014 of 26 March 2014, thereby bringing the operation of Ukraine’s natural gas market closer to European standards and improving its competitiveness.

In 2019, the total volume of natural gas transportation to domestic consumers and natural gas transit through the territory of Ukraine increased by 0.61% compared to the previous year and amounted to 116.0 bcm.

In particular, the volume of russian natural gas transit through Ukraine increased by 3.23%, or 2.8 bcm, compared to the previous year and reached 89.6 bcm. One of the factors affecting transit volumes was the increase in reverse-flow imports of natural gas from Europe by 3.7 bcm compared to 2018. At the same time, the volume of natural gas transported to domestic consumers decreased by 7.37% compared to the previous year and amounted to 26.4 bcm.

Among individual transit routes to European countries, the largest volumes of natural gas transported through Ukraine in 2019 were directed to Slovakia and Romania, amounting to 57.2 bcm and 10.2 bcm, respectively.

Imports of natural gas in 2019 continued to be supplied exclusively from European sources. According to the Ministry of Energy, import volumes in the reporting period amounted to 14.3 bcm, which was 34.91% higher than in 2018.

As part of the organisational transformation of Naftogaz of Ukraine NJSC, a separate Natural Gas Storage Division responsible for the provision of natural gas storage services was established in December 2019. The division was formed on the basis of structural units of Ukrtransgaz JSC, including the Gas Storage Operator of Ukraine Branch of Ukrtransgaz JSC, which operated 12 underground gas storage facilities (UGS facilities) located in mainland Ukraine. According to the division’s data, during 2019 a total of 13.1 bcm of natural gas was injected into underground gas storage facilities, which was 33.67% higher than in the previous year. At the same time, natural gas withdrawal volumes from storage facilities decreased from 10.6 bcm in 2018 to 8.0 bcm in 2019. Overall, the volume of natural gas stored in underground gas storage facilities amounted to 21.8 bcm, which was 24.53% lower than in 2018. The combined volume of natural gas transportation to domestic consumers and natural gas transit through the territory of Ukraine increased by 0.61% compared to the previous year and amounted to 116.0 bcm.

An important event in 2018 was the completion by Naftogaz of Ukraine NJSC of the first of three stages of unbundling process, namely the separation of storage activities (SSO) from gas transportation activities (TSO) within the Naftogaz group. According to the Law of Ukraine "On the Natural Gas Market", the activity of natural gas transportation must be separate and independent from the functions of supply and extraction, which is one of the main obligations of Ukraine within the framework of the Association Agreement with the European Union.

As part of this process, the Gas Storage Operator of Ukraine Branch was established within Ukrtransgaz JSC. The branch was designated to provide natural gas storage services and ensure the efficient and uninterrupted operation of Ukraine’s 12 underground gas storage facilities (UGS facilities) with a total storage capacity of 31 bcm. All storage-related assets, contracts, business processes and personnel were to be consolidated within the branch.

In addition, operational gas accounting, enterprise resource planning (ERP) systems, as well as internal policies and procedures, were separated from gas transmission activities.

In 2018, the total volume of natural gas transportation to domestic consumers was 28.5 bcm, which is 4.01% more than in the previous year. At the same time, the volume of natural gas transited through the transmission system of Ukraine in 2018 decreased by 7.17% compared to 2017 and amounted to 86.8 bcm.

According to Naftogaz of Ukraine NJSC, the decrease in the volume of natural gas transit through the territory of Ukraine in 2018 is due to the following three factors:

(1) decreased reverse supplies of gas imported from Europe to Ukraine; (2) increased utilization of the Nord Stream pipeline capacity; (3) reduced natural gas consumption in Europe in 2018.

In 2018, the Ukrainian GTS was mostly used for transmission of natural gas to Slovakia (49.2 bcm), Romania (18.1 bcm) and Hungary (11.8 bcm).

As of the end of 2018, Ukraine had not imported natural gas for its own needs from Russia for 1,134 days. Natural gas came to Ukraine only from the EU through the cross-border points. Ukraine received a total of 10.6 bcm of gas, which is 24.3% less than the previous year. The largest volume of natural gas came from Slovakia (61.32%), Hungary (32.08%) and Poland (6.60%).

In addition to transporting natural gas, the gas transmission system operator is also responsible for pumping and storing gas in underground storage facilities (UGS). In 2018, 9.8 bcm of natural gas were pumped into the underground storage facilities, which is 6.52% more than in the previous year. At the same time, the volume of natural gas extracted from the underground storage facilities from January to December 2018 was 65.63% bigger than for the same period in 2017 and amounted to 10.6 bcm. As of January 1, 2019, 13.8 bcm of natural gas were accumulated in Ukraine's underground storage facilities, which is 6.12% less than in 2017. In vew of the fact that natural gas extracted in Ukraine is pumped into the gas transmission system (including underground gas storage facilities) and distributed among a large number of consumers, it is impossible to establish transportation routes in the sense of the EITI standard.

The role of Ukraine’s main oil pipeline system is to transport crude oil from domestic production companies to refineries, to deliver imported oil to domestic refineries, and to facilitate the transit of oil to European Union countries via the territory of Ukraine.

The volume of oil transit and transportation across the territory of Ukraine in 2024 amounted to 13.52 million tonnes, which is 12.46% lower than in 2023.

In 2023, the volume of oil transit through the territory of Ukraine and domestic transmission amounted to 15.44 million tonnes, which is 4.08% less than in 2022.

JSC Ukrtransnafta, the operator of Ukraine’s trunk oil pipeline system, is the sole provider of crude oil transportation services, oil transshipment to and from maritime transport, and related services. The founder and sole shareholder of Ukrtransnafta JSC is Naftogaz of Ukraine NJSC. The trunk oil pipeline system of Ukraine operated by Ukrtransnafta JSC has a total length of 4,772.6 km in single-line equivalent, corresponding to 3,509.45 km of route length, with a pipe diameter of up to 1,220 mm. Uninterrupted oil transportation is supported by 28 oil pumping stations and the Pivdennyi Marine Oil Terminal, which has been unable to operate without disruptions since the beginning of the full-scale invasion. As of the end of 2022, 18 oil pumping stations remained operational, while the other 10 had been placed in safe preservation mode. For oil storage and the regulation of pumping operations within the trunk pipeline system, tank farms comprising 79 storage tanks with a total capacity of 1,083 thousand cubic metres are available. As a result of the military aggression of the Russian Federation, critical infrastructure facilities of Ukrtransnafta JSC did not sustain significant damage.

The current agreement between Ukrtransnafta JSC and Transneft PJSC provides for the transportation of up to 17 million tonnes of Russian crude oil annually through Ukraine’s trunk oil pipelines until 2030. On 4 August 2022, transit of russian crude oil through the Ukrainian section of the Druzhba trunk oil pipeline was temporarily suspended due to the failure of Transneft PJSC to make an advance payment. The existing contract предусматриває crude oil transportation services solely on a 100% prepayment basis. Although payment for transportation services was not received from Transneft PJSC, the Hungarian oil company MOL, a major consumer of crude oil transported through the southern branch of the Druzhba pipeline, assumed responsibility for paying the transit fee for Russian crude oil. On 10 August 2022, following receipt of the payment, crude oil transit through the Druzhba trunk oil pipeline resumed.

In 2022, the total volume of crude oil transit and transportation through the territory of Ukraine amounted to 16.10 million tonnes, which was 2.5% higher than in 2021. At the same time, domestic crude oil transportation volumes almost halved to 1.6 million tonnes, while transit volumes increased.

In 2021, the total volume of crude oil transit and transportation through the territory of Ukraine amounted to 15.7 million tonnes, which was 0.63% lower than in 2020. This included 12.7 million tonnes of crude oil transit and 3.0 million tonnes of domestic crude oil transportation.

The system’s entry capacity amounted to 114 million tonnes per year, while exit capacity totalled 56.3 million tonnes per year. The total nominal capacity of the storage tank farms was 1,083 thousand cubic metres. The infrastructure of the Naftogaz of Ukraine NJSC Group also included the Pivdennyi Marine Oil Terminal (which has been unavailable for use since 24 February 2022 due to the blockade of Black Sea ports) and 28 oil pumping stations.

On 30 June 2021, Ukrtransnafta JSC signed an agreement with the Asset Recovery and Management Agency (ARMA) regarding the operation of the Ukrainian section of the Samara-Western Direction petroleum products pipeline for a period of five years. Under the terms of the agreement, Ukrtransnafta JSC acquired the rights and obligations related to the transportation, storage and transshipment of petroleum products to road and rail transport. Ukrtransnafta JSC also undertook to pay the State no less than UAH 1.1 million per month in revenues generated from the management of the petroleum products pipeline over the five-year period. The transfer of the assets was completed in July 2021. As a result, the company’s infrastructure was expanded to include a 1,248 km pipeline with a throughput capacity of approximately 3.5 million tonnes of diesel fuel per year.

As of 2020, the Ukraine major oil pipelines system, which is used by Ukrtransnafta JSC, consisted of 19 oil pipelines with a total length of 3,506.6 km (4,767.4 km single line) and a diameter of 1,220 mm. The input capacity of the system the was 114 million tons / year, and at the output capacity – 56.3 million tons / year. The total nominal capacity of the tank farms of the system was 1,083 thousand cubic meters. The oil pipelines system in Ukraine includes Pivedennyi onshore oil terminal and 28 oil pumping stations, with some of them involved in the direct oil transmission. On the north-western border of the country, the system is connected with Belarus, and on the north-eastern border – with russia. On the western border – with Hungary and Slovakia, where the oil transit route goes from Belarus to the EU

During 2020, the total volume of oil transported in Ukraine increased by 1.94% and amounted to 15.8 million tons of oil. Of these, the volume of oil transported to the refinery increased by 8.33%, and the transit of oil through the pipelines decreased by 0.076%. In 2020, there was a decline in oil demand due to the COVID-19 pandemic, however due to the capacities that enabled exports of oil from the Black Sea basin to Belarus, the total volume of transported oil was even higher than the previous year. In addition, in 2020 Ukrtransnafta JSC provided oil storage services in the amount of 91.8 thousand tons.

In 2019 Ukrtransnafta JSC increased the volume of total oil transmission by 0.6% – from 15.4 million tons in 2018 to 15.5 million tons in 2019. Of these, the volume of domestic transmission to the refineries amounted to 2.4 million tons, which is 14.29% more than in the previous year, while the volume of oil transit fell by 1.50% compared to 2018 and mounted to 13.1 million tons

The factors that caused the drop in the volume of oil transit through Ukraine included forced stoppage of transit due to the deterioration of oil quality (increased content of organochlorine compounds in oil), which came through the Druzhba pipeline from the russian direction.

In 2018, the total oil transmission volume decreased by 3.75% compared to the previous year and amounted to 15.4 million tons, including 13.3 million tons of oil transit, and 2.1 million tons of oil transmitted to Ukrainian refineries (up 0.2% compared to 2017).

In 2018, the general oil transit declining trend continued. In 2018, the volume of oil transit dropped by 4.32%, from 13.9 million tons in 2017 to 13.3 million tons in 2018.

In 2018, the structural units of Ukrtransnafta JSC include: the branches of Druzhba Major Oil Pipelines (transmission of oil to Drohobych Oil Refinery and Naftokhimik Prykarpattia), Prydniprovsky Major Oil Pipelines (tranmission of oil to Lysychansky Oil Refinery (shut down as of 2017) and Kremenchuk Oil Refinary), and Pivdenni Major Oil pipelines (Kherson Oil Refinery (shut down in 2005), and the Odessa Oil Refinery, which in 2017 was confiscated by the decision of the Suvorov District Court of Odessa in favor of the state).

In 2018, the Odessa – Kremenchuk oil pipeline section and the first stage of the Mozyr – Brody oil pipeline resumed their operations.

Among the material reporting companies, 25 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2024. The total expenditures of companies on natural gas transportation services within the territory of Ukraine amounted to UAH 34,329.55 million, while the physical volume of natural gas transported by reporting companies reached 82,825.55 million cubic meters.

In addition to transportation costs, oil and gas companies reported payments for other services related to the use of the gas pipeline network. The services include fees for boiler operation, maintenance of gas transmission system components, payments for imbalances, payments for non-compliance with gas quality parameters, financial collateral, etc.

The material reporting companies submitted information on their expenses for storage services in favour of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on the items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 23,997,319.62 thousand in 2024.

Of the total number of material reporting companies in the oil and gas industry, only two companies provided information on the costs of oil transportation services —Ukrtransnafta JSC and Ukrnafta JSC. According to the companies’ data, their total expenditures in 2024 amounted to UAH 7,590.81 million, of which expenditures on Ukrtransnafta’s services amounted UAH 247.40 million.

20 material reporting companies reported on the physical volumes of transmission of produced natural gas and the total value of the services for 2023. The total gas transportation costs of the companies within across the territory of Ukraine amounted to UAH 1,897.60 million thousand, and the physical volume of natural gas transmitted by the material reporting companies is 15,365.04 million cubic meters.

In addition to the payments made to GTS Operator of Ukraine LLC, material reporting companies reported through the UAEITI Portal their payments to other companies for gas transmission across the territory of Ukraine.

In addition to transportation costs, oil and gas companies reported payments for other services related to the use of the gas pipeline network. The services include fees for boiler operation, maintenance of gas transmission system components, payments for imbalances, payments for non-compliance with gas quality parameters, financial collateral, etc.

The material reporting companies submitted information on their expenses for storage services in favour of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on the items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 724,540.79 thousand in 2023 Of the total number of the reporting companies in the oil and gas industry, only 4 provided information on the costs of oil transportation services. According to the companies, their total costs amounted to UAH 5,006.62 million in 2023, which is almost 10 times more than in 2022.

Among the material reporting companies, 24 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2022. The total expenditures of companies on natural gas transportation services within the territory of Ukraine amounted to UAH 1,712.70 million, while the physical volume of natural gas transported by reporting companies reached 13,444.98 million cubic metres.

The material reporting companies submitted information on their expenses for storage services in favour of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on these items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 1,059,698.27 thousand in 2022.

Of the total number of material reporting companies in the oil and gas industry, only three companies provided information on the costs of oil transportation services. According to the companies’ data, their total expenditures in 2022 amounted to UAH 527.99 million, which was 8.02% lower than in 2021.

Among the material reporting companies, 26 companies operated in the oil and gas extraction sector, of which only 10 provided information on the physical volumes of transportation of produced natural gas and the total expenditures on transportation services in 2021. According to the information reported by these companies, their total expenditures on natural gas transportation services amounted to UAH 2,026,933.76 thousand, while the physical volume of natural gas transported was 13,432,428.90 thousand cubic metres.

In addition to transportation services, 12 material reporting oil and gas companies reported payments for other services related to the use of gas pipeline and gas storage infrastructure.

Among the material reporting companies, 26 companies operated in the oil and gas extraction sector, of which only three provided information on the physical volumes of transportation of produced crude oil and the total expenditures on oil transportation services in 2021. According to the companies’ data, their total expenditures on oil transportation services amounted to UAH 570,353.40 thousand in 2021.

To meet the requirements of the EITI Law, oil and gas companies provided data on the physical volume of transportation of extracted natural gas and the total cost of transportation services in 2020. The payments were made in favour of Gas Transmission System Operator of Ukraine LLC, as well as other companies that provided natural gas transportation services under previously concluded agreements. The total costs of transportation of the extracted natural gas incurred by the companies amounted to UAH 1,687,353.54 thousand, and the physical volume of the transported natural gas was 15,881.05 tcm.

In addition, 12 reporting oil and gas companies provided information on the volume of transportation of extracted natural gas and the value of the transportation services in 2019. In total, the companies spent UAH 3,774,464.69 thousand for the transportation of 18,369,129.71 tcm of natural gas in the reporting period. Of these, the total payments in favour of Ukrtransgaz JSC and its branches amounted to UAH 1,769,211.02 thousand, and in favour of Gas Transmission System Operator LLC, the subsidiary of Ukrtransgaz JSC – UAH 26,727.50 thousand.

Also, the 14 reporting oil and gas companies provided information on other costs, including the cost of natural gas storage (injection and withdrawal) services during 2019. The companies paid the total of UAH 25,690,602.85 thousand for the services other than transportation of their own extracted natural gas. Of the total amount, the payments in favour of Ukrtransgaz JSC and its branches amounted to UAH 25,690,602.85 thousand, of which UAH 3,087,789.35 thousand were paid by the extracting companies for natural gas storage services and UAH 22,602,813.50 for other types of services. Also, out of the total amount paid in favour of Gas Transmission System Operator LLC, the subsidiary Ukrtransgaz JSC, UAH 2,838.28 thousand was paid for the provision of other services.

Two reporting companies also provided information on their expenditures for the oil transmission service in the reporting period, namely Ukrnafta JSC and its subsidiary Ukrkarpatoil LTD JVA. According to Ukrnafta JSC, it paid UAH 34,247.30 thousand to Ukrtransnafta JSC in 2019.

Also, 15 reporting oil and gas companies provided information on costs of other services, including natural gas storage (injection and withdrawal) during 2018. Altogether, the companies paid UAH 35,121,720.25 thousand for the services other than transmission of natural gas extracted by them. The payments in favor of Ukrtransgaz JSC and its branches amounted to UAH 35,110,635.19 thousand, including UAH 2,302,644.36 thousand for natural gas storage services and UAH 32,807,990.84 thousand for other services.

In 2018, Ukrtransnafta JSC provided information on physical volumes and revenues from oil transportation service. According to Ukrtransnafta JSC, the reporting companies, namely Ukrnafta PJSC, paid UAH 160,979.00 thousand for the transportation of 2,100.90 thousand tons of oil.

Among the material reporting companies, 25 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2024. The total expenditures of companies on natural gas transportation services within the territory of Ukraine amounted to UAH 34,329.55 million, while the physical volume of natural gas transported by reporting companies reached 82,825.55 million cubic meters.

In addition to transportation costs, oil and gas companies reported payments for other services related to the use of the gas pipeline network. The services include fees for boiler operation, maintenance of gas transmission system components, payments for imbalances, payments for non-compliance with gas quality parameters, financial collateral, etc.

The material reporting companies submitted information on their expenses for storage services in favour of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on the items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 23,997,319.62 thousand in 2024.

Of the total number of material reporting companies in the oil and gas industry, only two companies provided information on the costs of oil transportation services —Ukrtransnafta JSC and Ukrnafta JSC. According to the companies’ data, their total expenditures in 2024 amounted to UAH 7,590.81 million, of which expenditures on Ukrtransnafta’s services amounted UAH 247.40 million.

Among the material reporting companies, 20 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2023. The total gas transportation costs of the companies within across the territory of Ukraine amounted to UAH 1,897.60 million thousand, and the physical volume of natural gas transmitted by the material reporting companies is 15,365.04 million cubic meters.

In addition to the payments made to GTS Operator of Ukraine LLC, material reporting companies reported through the UAEITI Portal their payments to other companies for gas transmission across the territory of Ukraine.

In addition to transportation costs, oil and gas companies reported payments for other services related to the use of the gas pipeline network. The services include fees for boiler operation, maintenance of gas transmission system components, payments for imbalances, payments for non-compliance with gas quality parameters, financial collateral, etc.

The material reporting companies submitted information on their expenses for storage services in favor of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on the items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 724,540.79 thousand in 2023 Of the total number of the reporting companies in the oil and gas industry, only 4 provided information on the costs of oil transportation services.

According to the companies, their total costs amounted to UAH 5,006.62 million in 2023, which is almost 10 times more than in 2022

Among the material reporting companies, 24 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2022. The total expenditures of companies on natural gas transportation services within the territory of Ukraine amounted to UAH 1,712.70 million, while the physical volume of natural gas transported by reporting companies reached 13,444.98 million cubic metres.

The material reporting companies submitted information on their expenses for storage services in favour of the gas storage operator Ukrtransgaz JSC. The storage services are accounted for on the following three items: natural gas injection, monthly operational storage volume, and withdrawal. Most companies report on these items in a disaggregated manner. The total expenses of the material reporting companies for storage services amounted to UAH 1,059,698.27 thousand in 2022.

Of the total number of material reporting companies in the oil and gas industry, only three companies provided information on the costs of oil transportation services. According to the companies’ data, their total expenditures in 2022 amounted to UAH 527.99 million, which was 8.02% lower than in 2021.

Among the material reporting companies, 26 companies operated in the oil and gas extraction sector, of which only 10 provided information on the physical volumes of transportation of produced natural gas and the total expenditures on transportation services in 2021. According to the information reported by these companies, their total expenditures on natural gas transportation services amounted to UAH 2,026,933.76 thousand, while the physical volume of natural gas transported was 13,432,428.90 thousand cubic metres.

In addition to transportation services, 12 material reporting oil and gas companies reported payments for other services related to the use of gas pipeline and gas storage infrastructure.

Among the material reporting companies, 26 companies operated in the oil and gas extraction sector, of which only three provided information on the physical volumes of transportation of produced crude oil and the total expenditures on oil transportation services in 2021. According to the companies’ data, their total expenditures on oil transportation services amounted to UAH 570,353.40 thousand in 2021.

To meet the requirements of the EITI Law, oil and gas companies provided data on the physical volume of transportation of extracted natural gas and the total cost of transportation services in 2020. The payments were made in favour of Gas Transmission System Operator of Ukraine LLC, as well as other companies that provided natural gas transportation services under previously concluded agreements. The total costs of transportation of the extracted natural gas incurred by the companies amounted to UAH 1,687,353.54 thousand, and the physical volume of the transported natural gas was 15,881.05 tcm.

According to the financial statements of JSC "Ukrtransgaz" for 2019, the company's loss in 2019 decreased to UAH -23,585.8 million, which is 27.71% lower than in 2018.

In 2018, the decrease in the volume of natural gas transit in 2018 compared to the previous year resulted in reduce of Ukrtransgaz’s income by 1.70%. In addition, the company's net loss increased from UAH 24,830 million in 2017 to UAH 32,627.8 million in 2018

GTS Operator of Ukraine LLC provided data on its revenues received from transportation services in 2024 through the UAEITI Portal. The total volume of payments for the GTS Operator's services amounted to UAH 37,908.38 million.

According to these data, in 2024 Ukrtransnafta JSC transported 13,521.90 thousand tonnes of oil and received total revenue in the amount of UAH 11,115.96 thousand.

GTS Operator of Ukraine LLC provided data on its revenues received from transportation services in 2023 through the UAEITI Portal. The total volume of payments for the GTS Operator's services amounted to UAH 35,356.31 million, which is 2% more than in the previous year.

Ukrtransnafta JSC reported its revenue from oil transportation in the amount of UAH 9.77 million, including UAH 0.25 million for domestic transportation.

GTS Operator of Ukraine LLC provided data through the UAEITI Portal on its revenues received from transportation services in 2022. The total volume of payments for the GTS Operator’s services amounted to UAH 34,578.67 million, which was 11% less than in the previous year.

Ukrtransnafta JSC reported revenue from oil transportation in the amount of UAH 5,605.67 million, of which UAH 188.74 million was received from domestic transportation in 2022.

According to the data reported by GTS Operator of Ukraine LLC in its Report on payments in favour of the state, the company received revenue from natural gas transportation services in the amount of UAH 38,963.39 million. In its 2021 Report on payments in favour of the state, GTS Operator of Ukraine LLC did not disclose revenue from natural gas transportation services by individual payer company.

At the time of preparation of this EITI Report, Ukrtransnafta JSC had not published its 2021 financial statements in the public domain. Therefore, data from the annual report of Naftogaz of Ukraine NJSC were used as the source of information on the revenues of its subsidiary, Ukrtransnafta JSC. Net revenue from crude oil transit services in 2021 amounted to UAH 3.58 billion, which was 3.4% higher than in the previous year. Net revenue from the company’s core activities (crude oil transit and domestic crude oil transportation) amounted to UAH 3.95 billion, which was 12.47% lower than in 2020.

In 2020, Gas Transmission System Operator of Ukraine LLC received from 19 reporting companies the total of UAH 2,111,799.00 thousand for transportation of the products provided by the customers in the amount of 19,983.14 mcm.

According to the data of the company, in 2020 Ukrtransnafta JSC transported 15,739.93 thousand tons of oil and received a total revenue of UAH 3,734,040.57 thousand.

In 2019, according to the response of Ukrtransgaz JSC, from the reporting mining companies were received payments for transportation services (domestic consumers) in the amount of UAH 2,473,912.29 thousand.

In 2019, according to data reported by Ukrtransnafta JSC, payments for oil transportation services received from material reporting extractive companies, namely Ukrnafta PJSC, amounted to UAH 196,092.80 thousand.

In 2018, 5 reporting oil and gas companies provided information on the volumes of transmission of extracted natural gas and their payments for the transmission service. These companies paid a total of UAH 263,753.76 thousand for the transportation of 883,940.72 thousand m3 of natural gas. Of these, the total payments in favour of Ukrtransgaz JSC and its branches are UAH 157,698.39 thousand.

According to the financial report of GTS Operator of Ukraine LLC for 2024, net revenue from core operations amounted to UAH 38,526.85 million, of which UAH 37,909.37 million related to the direct transportation of natural gas and UAH 311.11 million to gas transmission system balancing.

According to the financial statements of Ukrtransnafta JSC, the Company’s total net profit in 2024 amounted to UAH 3,713.36 million81. Net revenue from all types of the Company’s activities in 2024 amounted UAH 10.71 billion, which is 2.37% lower than in the previous reporting period. This period was characterized by the absence of revenue from oil sales and a significant decline in revenue from other activities. At the same time, transit accounted for 97.85% of the Company’s total net revenue.

There are no publicly available information for estimating the revenue and financial results of the GTS Operator and the Gas Storage Operator, as both companies have not published financial statements for 2023. Therefore, the Independent Administrator used the data on revenue from gas transportation and storage included in the reports of oil and gas companies provided through the UAEITI Portal. 20 material reporting companies reported on the physical volumes of transmission of produced natural gas and the total value of the services for 2023. The total gas transportation costs of the companies within across the territory of Ukraine amounted to UAH 1,897.60 million thousand, and the physical volume of natural gas transmitted by the material reporting companies is 15,365.04 million cubic meters.

According to the Ukrtransnafta JSC financial statements, the company's net income from the sale of services in 2023 amounted to UAH 9.53 billion, which is 41% higher than the result of the previous year. The net income from oil transit and capacity reservation is UAH 9.36 billion (98.22% of income). Income from oil transit increased by 71.40% year-on-year.

No publicly available sources were available for assessing the revenues and financial performance of GTS Operator of Ukraine LLC and Ukrtransgaz JSC, as neither company published its 2022 financial statements. Therefore, the Independent Administrator used data on revenues from natural gas transportation and storage services reported by oil and gas companies through the UAEITI Portal. Among the material reporting companies, 24 companies reported physical volumes of transportation of produced natural gas and total expenditures on these services for 2022. The total expenditures of companies on natural gas transportation services within the territory of Ukraine amounted to UAH 1,712.70 million, while the physical volume of natural gas transported by reporting companies reached 13,444.98 million cubic metres.

According to the financial statements of Ukrtransnafta JSC, the Company's net revenue from services amounted to UAH 5.56 billion in 2022, which was 41% higher than in the previous year. Net revenue from crude oil transit and capacity reservation services amounted to UAH 5.38 billion, accounting for 97% of total revenue. Revenue from crude oil transit increased by 36% year-on-year. At the same time, Ukrtransnafta JSC reported a profit of UAH 5.67 billion in 2022, compared to UAH 1.70 billion in 2021. The increase in profit was primarily attributable to significant growth in revenues from transit services and crude oil sales, while the cost of goods and services sold remained relatively low.

Information on the financial performance of GTS Operator of Ukraine LLC for 2021 is not publicly available. Therefore, the Independent Administrator used the company’s financial data for the first three quarters of 2021. As of 30 September 2021, the net revenue of GTS Operator of Ukraine LLC amounted to UAH 40,055.45 million, while the company’s net profit reached UAH 5,801.76 million.

Ukrtransnafta JSC did not publish its 2021 financial statements in the public domain. Therefore, data from the annual report of Naftogaz of Ukraine NJSC were used as the source of information on the revenues of its subsidiary, Ukrtransnafta JSC. Net revenue from crude oil transit services in 2021 amounted to UAH 3.58 billion, which was 3.4% higher than in the previous year.

According to the financial report of Gas Transmission System Operator of Ukraine LLC for 2020, the net income from operating activities amounted to UAH 57,574.71 million, including UAH 53,472.93 million for direct transportation of natural gas and UAH 4,101.78 million for balancing the gas transmission system. In 2020, Gas Transmission System Operator of Ukraine LLC reported the revenue obtained from transportation services in the amount of UAH 53,305,171.94 thousand.

As part of the preparation of the EITI Report for 2020, Gas Transmission System Operator of Ukraine LLC, being the only company providing natural gas transmission services throughout Ukraine, provided information on the physical volume of the transported natural gas and the revenues from its transportation service. In 2020, Gas Transmission System Operator of Ukraine LLC reported the revenue obtained from transportation services in the amount of UAH 53,305,171.94 thousand.

Ukrtransnafta JSC revenue from the core business in 2020 amounted to UAH 4,512.87 million, which is higher than in 2019. The largest share in the total revenue was from oil transit and capacity reservation services – UAH 3,466.08 million. The company received UAH 275.24 million from transmission oil to the refineries, and UAH 771.56 million – from oil sales

According to the financial statements of Ukrtransgaz JSC for 2019, the company's net operating income in the reporting period increased by 58.34% compared to the previous year and amounted to UAH 3,274.7 million. Of these, UAH 3,262.2 million was income from natural gas storage services, and UAH 12.4 million – income from the sale of other services.

In 2019, the income of Naftogaz of Ukraine NJSC, the parent company of Ukrtransgaz JSC, from the sale of natural gas transmission, distribution and storage amounted to UAH 96,202 million, which is 5.04% less than in the previous year. As a part of preparation of the EITI Report 2019, Ukrtransgaz JSC reported on the income of the gas transmission system operator by type of products sold.

The operating income of Ukrtransnafta JSC in the reporting period amounted to UAH 3,576.7million, which is 7.7% less than in 2018. In 2019, the net profit also dropped significantly to UAH 779.2 million compared to UAH 1,463.2 million in the previous year.

The decrease in the volume of natural gas transit in 2018 compared to the previous year resulted in reduce of Ukrtransgaz’s income by 1.70%. In addition, the company's net loss increased from UAH 24,830 million in 2017 to UAH 32,627.8 million in 2018

According to the results of 2018, the total revenue of Ukrtransgaz JSC from its operations was UAH 50,313.3 million and included the following components:

According to Ukrtransnafta JSC financial statements, the company's operating income increased by 2.25% in 2018 compared to the previous year and amounted to UAH 3,873.19 million. In the reporting period, the net profit is UAH 1,463.24 million, which is 31.61% lower than in 2017.