Agro Perspectiva

Yatseniuk instructs to maximize volumes of reverse gas

04.02.2015 17:56 "Agro Perspectiva" (Kyiv) — The Ukrainian Prime Minister Arseniy Yatseniuk has instructed the Energy and Coal Industry Ministry and NJSC Naftogaz Ukrainy to pump maximum gas from the EU into underground storage facilities at the lowest price in the coming summertime and maximize volumes of reverse gas in order to continue to reduce the share of Russian gas in Ukraine’s energy balance, Government Portal says referring to Yatseniuk report at the Cabinet meeting on Wednesday, Feb 4. Yatseniuk has reminded that in June last year the Government of Ukraine «refused to sign with Russia a fixed price for gas», on which the Russian side insisted. «I then refused to sign the US$485 stable price favorable to Russia,» he said, reminding that Russia then suggested the US$385 price. «Due to the fact that Ukraine along with the European Union managed to defend our positions at the level of the tripartite agreement between the EU, Ukraine and Russia on a temporary gas supply, the gas price for this quarter is not US$500, not US$385, but US$329,» the Prime Minister emphasized. Now, he stressed, Ukraine is looking forward to a natural gas price charged by European partners in the summer period (i.e. the second and third quarters of 2015): from US$250 to US$300. The Prime Minister has instructed the Ukrainian Ministry of Energy and Coal Industry together with NJSC Naftogaz Ukrainy to pump maximum gas into Ukrainian underground gas storage facilities at the lowest price in the summer period. «Falling oil prices enable us to take advantage of positive market conditions and not to overpay Russia, as we didn’t overpay for the past year,» he said. «Subsidies for Russia have been ended. We work only in accordance with market conditions and fulfill our obligations under contracts. Let them leave their discounts in Russia. There is a market price and at the market price we primarily buy from our European partners,» Yatseniuk stressed. He has also recalled that earlier Ukraine bought 5% of gas in Europe and 95% — in Russia. Thus, up to the results of the last year, 67% of gas is purchased in the EU, and only 33% — in Russia. «I demand a gradual further decline in the share of Russian gas in Ukraine’s energy balance. This is cheaper and more efficient.» Yatseniuk has set the technical task to maximize the volume of reverse gas. Besides, the PM has informed that Slovak Prime Minister Robert Fico is to arrive in Ukraine on Feb 6. He has reminded that Slovakia together with Poland and other EU countries is one of the key suppliers of gas on the reverse route: «I am going to hold talks on an increase in gas supplies to Ukraine from Europe with our Slovak friends. It’s cheap and effective.»