Closing statement by Arseniy Yatsenyuk at a session of the Government on September 23, 2014

Dear colleagues! I appeal to everyone who is responsible for we could pass the winter, as the situation is extremely difficult, but what is necessary to overcome the winter we will do.

There have been accumulated about 17 billion cubic meters of gas in the Ukrainian gas storages. On conditions of using an emergency plan, provided we don’t buy extra amount of natural gas from the Russian Federation, as Russia is pressing and will continue to do it, including by using a "gas weapon", we will have to significantly reduce consumption, primarily in the chemical sector, in industry, in order not to afford to freeze the country. And the fact that we have replaced the amount in 25 billion cubic meters of gas, which Ukraine was buying from Russia, at that, 15 billion cubic meters were replaced by gas the Ukrainian side buys from European companies through reverse flows. This is a significant step forward. But, certainly, it is not enough.

Regarding energy saving measures, we launch a broad program of loans for the purchase of boilers that will reduce natural gas consumption. And the Government will compensate up to 20% of the cost of a boiler. Oschadbank in synergy with the Government starts this program. About 33 thousand of households may get loans as well as the government compensation for the replacement of boilers by the end of the current year.

Moreover, over recent six months the Government has done ten steps to ensure energy efficiency. These are promoting the replacement of boilers, a special rate, which allows to get more with less gas consumption, an investment program that provides compensation if new boilers use less gas than the old ones.

An unsolved issue remains increase of natural gas production.

Two bills have been submitted to the Parliament to stimulate investment activity in the natural gas production, which are as usual are blocked by the Parliament. It concerns firstly the production sharing agreements signed by Ukraine with the Shell and Chevron companies. Once again I appeal to the Parliament, who blocks these initiatives, to vote for these laws before the election.

On September 26 we shall have the next round of tripartite talks. As always we don’t expect any forward-looking decisions from the tripartite negotiations between the EU, Ukraine and the Russian Federation, in particular due to the position of Russia. Nevertheless, Ukraine has liberalized its market. We have adopted the Law “On the access to Ukraine’s gas transportation system”. We expect the European and American investors to come.  

Today we have publicly declared that as the transit country we shall meet our commitments. Unfortunately, now we have no certain obligations to the European partners, as we have no transit deals. Therefore, we address the European partners to stir up signing transit contracts with Ukraine. It would be fair and correspond with the Third Energy Package, in particular.

Hence, we are working on how to pass the winter, to withstand, to reduce our dependence on the Russian gas. And in the following decade I see we will be capable to diversify our sources of gas supplies and Russia won’t have a single chance to blackmail Ukraine ever.