Crimea to Nationalize Ukrainian Energy Companies

Tuesday, 18 March, 2014

The State Council of Crimea is to nationalize two Ukrainian energy companies ahead of its integration into Russia, as the fallout from Ukraine’s political crisis continues.

In an ‘extraordinary’ plenary session on Monday, Crimea claimed nationalization was necessary to ensure ‘environmental and energy security’. Two companies are to be taken over, Chornomornaftohaz and Ukrtransgaz, with one official saying they were likely to be sold to Gazprom once it is annexed with Russia.

Rustam Temirgaliev, Crimea's first deputy prime minister, said "After nationalisation of the company we would openly take a decision - if a large investor, like Gazprom or others emerges - to carry out (privatisation)."

The move would be a crucial part of Crimea’s separation from Ukraine, but with rising gas prices due to the crisis, there’s a chance the Ukraine will react to losing its state energy companies, especially to the Russian giant Gazprom, whom it is alleged Putin holds shares in.