Prime Minister of Ukraine Arseniy Yatsenyuk expressed hope
that the new Parliament would endorse a law on the state of emergency in the
energy sector and other laws, "which could finally shed light on the
domestic production of gas and oil". The Head of Government said at the
session of the Cabinet of Ministers of Ukraine on Wednesday, November 26.
He reminded that nine months before the storages of the NJSC
Naftogaz of Ukraine had contained 5 billion cubic meters of the so-called
buffer gas, "We increased these reserves up to 17 billion cubic meters.
Now the low temperatures have forced us to consume 2 billion. That is, we have
in storages approximately 15 billion cubic meters of gas".
"It is difficult, but the batteries are kept warm. I told
that there would be problems with heating, but we will not freeze. Now I can
say that there will be heating, just remain attentive. Gas shouldn’t be wasted,"
said Arseniy Yatsenyuk.
He noted that the activities carried out by the Government in
order to increase tariffs had failed, "In connection with devaluation of
the national currency, we could not compensate for the deficit of company Naftogaz.
The rates do not correspond to the market prices but gas needs to be paid for
at the market price. With this aim we have allotted from this year's budget UAH
103 billion for NJSC Naftogaz of Ukraine to buy gas, so that a fare difference
would be paid, between that paid by the population and the real cost of gas. Apart
from that, out of this sum worth UAH 103 billion we paid USD 1 billion 670
million to repay the debt of NJSC Naftogaz of Ukraine.
Moreover, according to Arseniy Yatsenyuk, Ukraine has
managed to deprive itself of the Russian gas dependence, "Not completely,
we recognize it, even Europe cannot completely free itself from Russian gas
dependence. But in cooperation with our European and American partners we have
replaced by 60% the natural gas deliveries from Russia with gas from the EU
The PM explained we had saved USD 500 million by refusing in
June the then “persistent Russian proposal regarding a gas price, which
included the so-called temporary discount", "The gas we are buying
from our European partners is cheaper than gas we had to buy from the Russians.
USD 500 million is the sum we should have paid to Russia, but we refused to pay
and saved for Ukraine".
stressed the need to continue diversifying of energy sources, "We are
working out this issue with our European and American partners. We plan to
increase the volumes of reverse gas supplies, to build new pipelines – the Government
has already made a relevant decision – to ensure diversification of energy
supplies in Ukraine".
He reminded that a number of deals had been signed with western
companies, namely, with StatOil from Norway, as well
as German and French companies, "Our policy to diversify energy sources and
reduce dependence on Russia proves to be successful and we will continue."
"Apart from that, our
Government has managed to make the Parliament to support the law on
modernization and operation of the gas transportation system at the third attempt.
We have launched a procedure of attracting investors
to the Ukrainian GTS, where the state owns its share in a control package, another
49% can be distributed among operator companies or those of our European or
American partners only", said the Head of Government.
Another “very good sign” is reduced gas consumption: by 20% as
compared with 2013 showings, Arseniy Yatsenyuk informed.
The Government also commenced an energy efficiency program –
substitution of gas boilers by boilers using other fuels. This program was launched
through the Oshchadbank and the state budget of
Ukraine, "In the future, with assistance of our European investors we will
finance fuel meters and insulation of homes. And it will provide an opportunity
to save more and, accordingly, to reduce dependency".
"The scope of our energy activity is to accelerate
production of our own gas and maintain order on our domestic gas and oil
market. There is a lot of work to do here," he urged.
"I hope this Parliament will not establish an energy
lobby, similar to that in the previous one and which made it impossible for us
to adopt a law on introducing a state of emergency in the energy sector. Therefore,
the work of this Parliament, comprising 300 supporters of pro-European majority,
will yield into approval of not just the mentioned law but all other laws,
those that could finally shed light on oil and gas production," emphasized