Ukraine’s PM Asks Regional Governments to Pay Their Debts to Naftogaz

Ukraine urges expansion of Slovakia-Ukraine gas transmission, while unveiling mounting problems with natural gas payments on a regional level. 

“If in 2012 we have covered 80% of the payments, in 2014 we have hardly completed 50%,” Prime Minister of Ukraine Arseniy Yatsenyuk commented on Wednesday.

According to the Government, public subsidies would not be enough to compensate for the current difference in gas rates. 

“We are to fund directly from the Budget the difference in the tariffs. Currently the payments are being made through the local budgets,” Yatsenyuk explained, adding that Donetsk and Luhansk are the regions with the largest debt to Naftogaz, UAH 4 billion and UAH 1.2 billion respectively.

Kiev asked local governments to take full responsibility, making payments for the natural gas provided by utility companies.  

"Each hryvnia that is paid for gas must get to Naftogaz. Naftogaz has to convert it and purchase new amounts of natural gas," Yatsenyuk concluded. 

SLOVAKIA-UKRAINE GAS TRANSMISSION

Also on Wednesday, Kiev reiterated the importance of the corridor connecting Slovakia to Ukraine. Naftogaz called on Slovakia’s Eustream to increase capacity of the Vojany-Uzhhorod pipeline.

‘The pipeline, with current capacity of 27mcm/day (nearly 10bcm/year), was officially launched in early September 2014 to supply natural gas to Ukraine from the EU via Slovakia. Naftogaz hopes that the Slovakian operator will support prompt implementation of the proposed solution,’ reads a separate statement. 

According to Naftogaz, the contract signed by Eustream and Gazprom violated the Third Energy Package.

‘Therefore, this contract should be amended to enable two-way gas flows.’

Ukrtransgaz published on Wednesday data about the pipeline, stating that, on Monday, Ukraine imported 28.3 million cubic meter of natural gas from Slovakia and 2.7 million cubic meters from Poland.