Ukraine seeking to reduce Russian natural gas
imports 'to zero,' PM says
Kiev (Platts)--16Feb2015/743 am EST/1243 GMT
Ukraine will seek to reduce dependence on imports of
Russian natural gas "to zero", Prime Minister Arseniy
Yatseniuk said on Sunday.
"We have proved that we are able to get rid of Russian
gas dependence," Yatseniuk said in comments released by
the government's press service.
The share of the Russian gas in overall gas imports
dropped to 33% in the second half of 2014 from 95% in
2013, Yatseniuk said, adding that "I want this [share]
to be reduced to zero."
Ukraine was forced to step up imports of gas from Europe
after Russia, once its main gas supplier, completely
suspended gas supplies to Ukraine in June 2014 because
of a dispute over gas prices.
Russian gas supplies resumed in December 2014 after
trilateral talks between Ukraine, Russia and the EU in
October 2014.
Ukraine imports European gas via three different routes,
Slovakia, Hungary and Poland.
Yatseniuk said that Ukraine would continue to rely on
European gas imports boost domestic extraction of gas.
"We need to think more about the real energy
independence and efficiency of the country," Yatseniuk
said.
To encourage investment in domestic gas extraction, the
government will move to increase household gas prices
gradually to market levels.
Domestic gas prices are currently at about 20% of the
market price, but the government and the International
Monetary Fund have recently agreed on energy-sector
reform that requires a rise in prices.
"After prices have increased, Ukraine will have an
opportunity to raise domestic gas output," Yatseniuk
said.
In 2014, Ukraine cut imports of natural gas by 30.6%
year on year to 19.42 billion cubic meters, according to
the energy and coal industry ministry.
Ukraine's imports of gas from Russia dropped by 44.2%
year on year to 14.49 Bcm in 2014. #
Imports of gas from Europe more than doubled to 4.93 Bcm
from 2.1 Bcm.
--Alexander Bor, newsdesk@platts.com
--Edited by Jonathan Dart, jonathan.dart@platts.com