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  • Prime Minister: Government has adopted a strategy to increase domestic gas production in Ukraine
    Communications Department of the Secretariat of the CMU, posted 04 March 2021 14:18

    The Government's concept in the energy sector is a movement towards a market economy and market prices. This was stated by Prime Minister Denys Shmyhal on March 4 during a press conference dedicated to the results of the yearly activity of the Government.

    The Prime Minister noted that the gas market had been introduced on August 1, with the aim of forming a fair market price for gas for both the population and other consumers.

    "We are actively moving towards a fair, I emphasize, competitive gas market. Today, the gas and electricity markets in Ukraine are seeing the process of formation. There are certain shortcomings, there are signs of monopoly. Therefore, this monopolization of markets must be overcome," Denys Shmyhal stressed.

    The objective of the Government, according to the Prime Minister, is to avoid stress for the population in the context of prices in utility bills. He stressed that people do not have to analyze the monthly price of various suppliers and their salary to pay for heating in the winter.

    "That's why we introduce an annual product, when gas suppliers offer the population a fixed price for the whole year on the basis of the average gas price. This makes it possible to avoid price hikes in winter. This is convenient for people because they will be able to calculate their bills for the whole year, in particular for the heating season. If desired, it will be possible to switch to a monthly product," stressed Denys Shmyhal.

    In addition, the Prime Minister accentuated that the Government had embarked on a strategy to increase domestic gas production in Ukraine. For this purpose, Yuzivska area and the Black Sea shelf were transferred to Naftogaz Ukraine NJSC for appropriate exploration activities.

    We have concluded 8 production sharing agreements with both Naftogaz and private companies. Investments in this industry only in exploration in the next 2-3 years will amount to 10 billion hryvnias. We expect that the discovery of new fields will make it possible to fully meet the domestic needs of both the population and industrial consumers, to provide them due to the national production," the Head of Government stressed.

    Denys Shmyhal added that among the tasks in the direction of energy independence is Ukraine's entry into ENTSO-E, which synchronizes Ukraine's Ukrainian energy system with the European one.

    Prime Minister: Government has adopted a strategy to increase domestic gas production in Ukraine Prime Minister: Government has adopted a strategy to increase domestic gas production in Ukraine