The provision of paragraph 51.3 of the Procedure for the organization and holding exchange auctions for sale of crude oil, gas condensate of own production and the liquefied gas is being appealed before the Constitutional Court of Ukraine
The subject of the right to a constitutional petition – 51 People's Deputies of Ukraine – on July 24 appealed to the Constitutional Court of Ukraine to declare unconstitutional the provision of paragraph 51.3 of the Procedure for the organization and holding exchange auctions for sale of crude oil, gas condensate of own production and the liquefied gas, approved by the Cabinet of Ministers of Ukraine Resolution “About the organization and holding exchange auctions for sale of crude oil, gas condensate of own production and the liquefied gas” dated October 16, 2014 № 570 as amended.
The disputed provision of the Procedure stipulates that the seller fulfils his/her obligations to supply crude oil, gas condensate and liquefied gas after receipt of funds from the buyer in full in accordance with the terms of the contract of sale.
The petitioners believe that this provision contradicts a number of provisions of the Constitution of Ukraine, “because by issuing it, the Cabinet of Ministers of Ukraine went beyond its powers, regulating by-law the terms and conditions of transfer of ownership of crude oil, gas condensate and liquefied gas, although such issues should be determined exclusively by the laws of Ukraine.” At the same time, according to the People's Deputies of Ukraine, the disputed provision envisages unequal competitive conditions for oil and gas market participants.
The text of the constitutional petition can be found on the Court's official website under the heading “Pending before the Court”.
