Chuprina O., Kirakosyan A.

Oles Honchar Dnipropetrovsk National University


Effective economic and legal regulation of natural gas market in Ukraine is very important, as evidenced by the high place of gas industry in the national economy and the vital importance of the task to ensure the energy security of Ukraine in the contemporary globalized world. Among the reasons for the low efficiency of domestic gas market regulation can distinguish its high dependence on the political situation, the lack of a clear model of self regulation, an unfavorable investment climate in the country and many others.

 However, in the present time Ukraine can not achieve effective functioning of market mechanisms in the oil and gas sector.

One of the main reasons for curbing the development of market relations in the fuel and energy complex of Ukraine is the lack of governance and the creation of market conditions of the fuel and energy complex state.

Need of reform in connection with European integration, electricity markets, natural gas, coal products and nuclear fuel to meet competition and pricing, which would stimulate investment and encourage energy companies to increase operational efficiency.

Energy Strategy of Ukraine till 2030, was the first step toward solving tasks, and considered insufficient to strengthen the role of competition and highly competitive market environment.

Creating a competitive energy market in Ukraine should meet the following principles of the European Union:

• expanding competition in accordance with the principles of free movement of goods, services, capital and labor;

• ensure the reliability of energy supplies;

• ensuring environmental protection and civil protection from technogenic danger.

Ukraine's transition to a market model gas sector was the result of external factors, but under all the recommendations of the EU. Taken by the Government of Ukraine commitments to liberalization of the gas sector, which was one of the key conditions for a significant investment in domestic GTS. This attitude of public authorities to national energy security is a threat to society.

First, it undermines the financial stability of the former gas monopoly – "Naftogaz of Ukraine", incomes from which are distributed between many private regional gas traders.

Second, the market mechanism is unable to effectively solve problems that arise in cases of «failure or market failure» in a lack of resources.

Summarizing the analysis of the problems in the legal regulation of the gas market, it should be noted that there is no need to copy the course for a total liberalization of the market in the EU, and skillfully combine the free market with government support in the implementation of national projects addressing Ukrainian gas transportation system, forms and controls that should be clearly fix in the law. The priorities in reforming the natural gas market of Ukraine should be great transparency of competition, pricing and submission public, corporate and private interests of a single goal – the establishment of social economic order in this market.