This year the
Government has managed to reduce the deficit of Naftogaz
Ukrainy five times. Prime Minister of Ukraine Arseniy Yatsenyuk told in an
interview to Channel 5 on Sunday.
"Do you know
why we are facing the current situation regarding tariffs? Because
the price of energy resources has not met the market level over 20 years.
Well, we do not subsidize gasoline, do we? So you come to a gas station – there
is the market price there. We have taken a decision 15 years ago about how much
gasoline costs on the exchange, at a gas station, there is direct correlation.
How does petrol differ from gas? It's the same energy product," he said.
product costs $100, and you pay only $10 for it, it should be someone who pays
extra $90? It was the Budget. This means that taxes from people, business,
entrepreneurs were collected, loans were borrowed, and in 2014 due to the fact
that in 10 years nothing was done, we allocated subsidies to NJSC Naftogaz Ukrainy,
we just gave the money and it paid out all its debts. Exactly $10
billion," the Prime Minister underlined.
hospitals, schools, roads, jobs could have been built and created with this
money and how many energy efficient facilities could have been constructed to
reduce consumption of heat, energy, everything? Just how many boilers could
have been altered?" the Prime Minister said.
Arseniy Yatsenyuk stressed that this year the Government has
managed to reduce the deficit of Naftogaz five times.
"That was 10 billion last year. This year we expect 1.5-2 billion,
depending on the future situation," he said.
"There is no
other way except bringing tariffs to the market level. What is our goal? The
purpose is the following - Ukraine has to become completely energy independent
country within 10 years. This is our task. And we are moving towards this
objective and in particular via market rates," Arseniy
He recalled that
rates should have met the market level within a year.
it for three years. We have provided a social norm - 200 cubic meters for
citizens. We are gradually introducing new tariffs. We have launched a subsidy
program," he said.
Minister reminded that next week four international auditing firms should
provide their report on tariffs’ formation. However, he noted, now we can say
that "tariffs do not meet the market level, because they are too
Arseniy Yatsenyuk said it is easy to calculate: "Take the
current natural gas market price. In Europe, it is sold on average for $250/tcm. Multiply it at the rate of national currency, add the
cost of transit, value added tax, and we receive a figure that is much higher
than that currently provided for a social norm at 200 cubic meters for the