Saturday, 24 July 2010

Increased gas price for public and heating companies to lead to growth in its extraction in Ukraine

The increase in gas prices charged to the public and heating companies will allow the investment of additional funds in the development of Ukrainian gas fields, and increase the volume of gas extracted, Fuel and Energy Minister Yuriy Boiko said at a briefing on Friday, July 23.

"About Hr 1.2 billion [received from increasing gas prices] this year will be used to extract gas on the shelf of the Black and Azov seas," he said.

The minister said that the funds received would be directed to developing the Subotynske, Shtormove and Odeske gas deposits.

"The money invested will increase gas volumes and allow us to provide our consumers with [Ukraine's] own gas, and not to pay too much for it [to foreign suppliers]," the minister said.

He noted that Russia, despite having gas extraction volumes exceeding those of Ukraine, sets higher gas prices for the population compared to those in Ukraine.

"The main task is to optimize tariffs is to reach at least the level of the gas price in Russia, and thus obtain additional funds to increase [Ukraine's] own gas production, and not feed a foreign producer," said Boiko.

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