Ukraine has estimated the losses from reduced tariffs for gas transit

Ukraine has estimated the losses from reduced tariffs for gas transit

MOSCOW, 24 Dec — RIA Novosti. The company “Ukrtransgaz”, which is a subsidiary company of “Naftogaz” of Ukraine and is engaged in the supply, transportation and storage of gas on the territory of the country in 2019, expect a shortage of funds in the amount of 22 billion hryvnia (about $ 800 million) due to the reduction of tariffs for gas transit, a press release published on the official website of the company.

Previously, the national Commission carrying out regulation in the energy and communal services of Ukraine twice reduced tariffs for JSC “Ukrtransgaz” transportation services of natural gas to improve the competitiveness of the company as a more favorable alternative to the gas pipeline “Nord stream”.

“The new temporary rates and ignoring the control situation with a critically low level calculation of the regional gas balances make it impossible for the full and timely financing of JSC “Ukrtransgaz” procurement of gas for balancing of the CTA, payment of wages, repairs and implementation of capital investment,” — said in a press release.

In “Ukrtransgaz” also listed factors that lead to shortage of funds. Among them — restriction of gas purchases with the necessary 3.3 million to 2.6 million cubic meters, as well as understating of procurement prices for natural gas.

The cost of labor, which is provided by the state controller, 25% below the commitments “Ukrtransgaz” under the collective agreement. In addition, the national Commission “unreasonably” restricted to 10 billion the amount of funds that are available “Ukrtransgaz” for the implementation of capital investment, according to the company.