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PM says leaders of factions and groups of Verkhovna Rada jointly with Cabinet of Ministers to set up a working group to analyze gas pricing in Ukraine
05.07.2016 | 23:54
Information and Communication Department of the Secretariat of the CMU

Representatives of the Cabinet of Ministers of Ukraine, headed by Prime Minister of Ukraine Volodymyr Groysman and leaders of factions and groups of the Verkhovna Rada of Ukraine reached a preliminary agreement to establish a working group to analyze gas pricing in Ukraine at a meeting on Tuesday.

The Prime Minister has underlined that the Government is completely open, public, committed to interacting with the Ukrainian Parliament. "Now it is up to the leaders of various factions in order to insist perhaps on some other decisions," he pointed out.

Volodymyr Groysman emphasized that the gas price, established in Ukraine, is market-based. This will help eliminate corruption in the gas sector. "When there is a single gas price for Ukrainian gas production, there is no reason to fraud and corruption. Because rents for gas goes to the state budget, because the price we pay goes to the state budget and the state-run company. Moreover, 100% of the profits of state enterprises are revenue of the State that can replenish the state budget," said the Prime Minister.

The Prime Minister reminded that earlier on Tuesday the Verkhovna Rada adopted decision on criminal prosecution of MP Oleksandr Onyshchenko, who is suspected by the NABU of involvement in fraud in the gas sector.

The introduction of the market-based gas price will also increase production of Ukrainian gas, energy efficiency and help achieve energy independence, he stressed.

Volodymyr Groysman pointed out that by taking decision on the market gas price the Government established only the marginal price of gas, all other utility tariffs will be established under the submission of local authorities, which will be examined by the National Commission for State Regulation of Energy and Public Utilities.

The Prime Minister underlined that the State will support targeted assistance for citizens who need this aid, while those "who have big houses, big gas consumption," will pay full market price. The Prime Minister said that during the last heating season, the average payment for the consumption of heat and utilities made up 12% of revenue.

Volodymyr Groysman informed that the State allocates for the system of subsidies UAH 35 billion and 5 billion of reserve funds. Instead, in 2014, NJSC Naftogaz received UAH 114 billion to compensate the difference in gas prices.

"We must fight not for the tariff reductions that destroy the whole economy but for boosting people’s income. We have to focus on this. Unfortunately, we have not heard such proposals," said Volodymyr Groysman, commenting on the results of the meeting.

 

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