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Volodymyr Groysman: Maximum level of market gas price to eliminate corruption in gas price formation
08.07.2016 | 12:50
Information and Communication Department of the Secretariat of the CMU

The maximum level of market gas price will root out corruption in the gas sector, due to which Ukraine lost USD 53 billion, and encourage an increase in Ukrainian gas production, energy efficiency and energy independence, Prime Minister of Ukraine Volodymyr Groysman has stated during a conversation with journalists in the Parliament of Ukraine on Friday.

"We set the maximum level of natural gas price in order to eliminate corruption. The Government’s step was aimed at rooting out corruption in gas price formation," said Volodymyr Groysman

According to the materials of the Anti-Corruption Bureau, dealers purchased the state gas at a price 3-4 times less, "including those present in the Parliament who might block the rostrum today," and was resold to Ukrainians 2-3 times more expensive, reminded the Prime Minister.

Over the past 10 years in these schemes, according to experts, Ukraine has lost 53 billion dollars. By setting the maximum level of market price for gas, the Government eliminated corruption element, he said.

However, the establishment of the market-based price for gas will stimulate an increase in Ukrainian gas production and energy efficiency in the country, Volodymyr Groysman added.

"The Government will revive gas production in order to produce Ukrainian gas instead of delivering imported gas, as it was earlier, from Gazprom, and this will give the opportunity to produce gas for domestic needs," he stressed.

The Prime Minister noted that about 8 billion cubic meters of gas extracted in Ukraine is produced by private companies. He underlined that from 2008 to 2012 private companies were granted 150 licenses, while state-owned companies have received no license for gas production. Volodymyr Groysman emphasized that Ukrainian gas production had been destroying.

The market price for gas will also reduce gas consumption and provide energy independence and strengthening of the country, the Prime Minister highlighted.


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