Gas transit through Ukraine and gas imports by Ukraine are decreasing. The pipeline system is ageing and the current regulatory framework does not meet the European standards. In this context, the current organisation of the Ukrainian gas transmission system is revealing its substantial weaknesses: The high degree of government intervention in determining access conditions and tariffs is scaring off (potential) users and the lack of a sufficient and predictable income stream prevents long-term investments into the infrastructure. One key question when discussing reforming the regulatory framework is how gas transmission tariffs are structured and determined. The tariffs determine the business case for the operator and provide incentives for modernisation and efficient operation.