photo by UNIAN, Alexander Velmozhko
Forced withdrawal by the Cabinet of Ministers of up to 20% of natural gas from private companies at “operating cost” will lead to a drop in production, gas shortages and increased dependence on Russia.
This is stated in a statement Associations of gas production companies, including the state-owned Naftogaz of Ukraine.
“The suspension of investment activity will logically lead to an annual drop in production, lower taxes, and job cuts. Considering the launch of Nord Stream 2 and the risk of a reduction or complete interruption of the transit of Russian gas, this will significantly weaken the energy security of our country,” the association said.
The decision of the government to oblige all companies to sell 20% of their gas manually on a private exchange at a certain price in the association is considered a failure of the reform, a rejection of European integration.
“State regulation of the price of produced gas is an absolutely non-market mechanism through which, without exaggeration, we can lose our own gas production. The energy crisis must be overcome based on the experience of European countries, and not thanks to restrictions or coercive actions aimed at the activities of private gas producers,” – the words of the executive director of the Association of Gas Production Companies of Ukraine Artem Petrenko are quoted in the statement.
As a reminder, on December 30, the government decided to oblige all gas producing companies to sell 20% of their gas on the private Ukrainian Energy Exchange.
The price must not exceed the “operating cost” of production.