KYIV, Ukraine, March 24, 2011 /PRNewswire/ -- The Minister of Fuel and Energy of Ukraine Yuriy Boyko announced the plans of the national oil & gas giant Naftogaz to offer part of its shares on the international stock market in 2012-2013. By offering Naftogaz on the stock market the ministry plans to attract some 5-6 billion USD. The decision came as a result of a meeting of the Committee on Economic Reforms, headed by the President Viktor Yanukovych.

Yuriy Boyko noted that currently consultations are being conducted regarding the stock exchange where the IPO would be most profitable for Naftogaz.

"We plan to receive 5-6 billion dollars from the IPO. The money will be allocated toward the company development, domestic gas production increase and domestic gas transit system modernization," highlighted Boyko.

During the executive board meeting of the Committee on Economic Reforms on March 21, 2011, President Viktor Yanukovych voiced the possibility of selling a part of NJSC Naftogaz. For the reliable gas and oil refining products' supply, Ukraine has to attract finances on both internal and external markets, said Viktor Yanukovych. "If we have to cede a part of NJSC Naftogaz and to sell part of its shares, we will have to do it," added the president.

NJSC Naftogaz is the leading fuel and energy enterprise of Ukraine engageds in gas and oil fields exploration and development, supplies gas to the consumers in Ukraine and transits Russian gas to Europe.

Naftogaz is a strategic partner of Russian Gazprom. Around 70 percent of Russian gas - 94.6 billion cubic meters in 2010 - was transited through Ukraine to Europe.

Currently, work is underway to establish a joint Gazprom and Naftogaz enterprise for coal-bed methane production.

Naftogaz of Ukraine is a state-owned company that produces one eighth of Ukraine's GDP and provides 10 percent of the state budget revenues. The total number of the company's employees is 175 thousand people, which is about one percent of Ukraine's employable population, according to the company Web site. Suffice it to say that Ukraine's system of natural gas pipelines and underground natural gas depots is operated by the subsidiary of Naftogaz - Ukrtransgaz. Another Naftogaz subsidiary, GazUkrainy, distributes gas domestically to local Ukrainian heat supply companies.