Arseniy Yatsenyuk: Within a decade we will be able to abandon the purchase of Russian natural gas

Ukraine has reduced gas consumption by 20%: "There is a goal we are going to reach - within a decade Ukraine will be a completely energy independent state", said Prime Minister of Ukraine Arseniy Yatsenyuk in an interview with the Prime Time program with Myroslava Gongadze" on UA.First channel on Thursday, November 19.

For this purpose the Government, in particular, have submitted to the Parliament a new law on rents. “It is not a populist law which my political opponents offer to adopt. But the law which stipulates: the one who deals with mining, drilling new wells, increases the production of natural gas, pays low rent and have more incentives for investment in gas sector".

Apart from spurring domestic production to achieve energy efficiency, according to the Head of the Government, it is crucial to reduce energy consumption. Arseniy Yatsenyuk stressed that Ukraine had cut gas consumption by 20%.

Arseniy Yatsenyuk also reminded the Government's energy efficiency programme: "Energy efficiency loans have been issued at one billion hryvnias".

However, the Prime Minister stressed that the Government had established a broad system of subsidies: "If European gas costs US$ 250, we can't sell it at US$10. But if we sell it at US$ 10, the price we have been selling for 20 years, someone has to pay the difference amounting US$240. The sum was paid from the State Budget of Ukraine taking it from the pockets of taxpayers."

"Therefore, the Government took a decision and presently 4.2 million Ukrainian families receive the subsidy. If you pay over 10% of income for housing and utilities, the Government compensates you for this".

Another important element to achieve energy independence is cost-effectiveness: "Due to the reform in the energy sector, people began to economize."

Arseniy Yatsenyuk also reminded that the Government had launched reverse deliveries of natural gas to Ukraine: "Earlier we were dependent on Russian gas import almost 100%. By now Russia's share dropped to 30 percent."

"Slovakia, Poland and Hungary are the three main sources where we get our gas from member countries of the European Union. And getting this natural gas, we also have advantages in price and benefits that we are not fully dependent on the Russian gas monopolist", he stressed.

The Head of Government reminded that Ukraine had filed lawsuits against the Russian gas monopolist Gazprom to the Stockholm arbitration court: "We demand Russia to pay back $ 16 billion. We consider that Russia fixed an unfair price (for gas – ed.) for Ukraine. And we view that Russia underpays Ukraine for the transit of natural gas via Ukraine’s territory".

"We have raised the issue in front of the European Union to prevent Russia from building South Stream-2 pipeline, which deprives Ukraine of each transit opportunity and revenue worth 2 billion dollars a year," he added.

"These elements guarantee within a decade we will abandon the purchase of Russian natural gas," said Arseniy Yatsenyuk.