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Cabinet of Ministers Eases Demands for Gas Supplies in Current Heating Season

Thursday, 15 November 2018 16:38

The press office of Naftogaz of Ukraine NSJC reported to Ukrinform.

“Today, we officially published the resolution of the Cabinet of Ministers, which states new terms of natural gas supply to heating producers for population needs”, Naftogaz told.

In particular, the demand for settlement for the previous period for obtaining the right for gas supplies has been reduced from 90% to 78%, and for heating supply companies, operated under management of the State Property Fund of Ukraine – to 60%.

“The resolution, developed with involvement of Naftogaz of Ukraine, aims to settle the issue of heating in problematic populated localities and not allow gas disconnection for district heating companies during the heating period”, Naftogaz explained.

The new terms for providing nominations will be effective between 01 December 2018 to 01 April 2019, and for heating companies, operated under management of the State Property Fund of Ukraine, - from 16 November 2018 to 01 April 2019.

Previously Prime Minister Volodymyr Groisman suggested that city councils should initiate the receipt into possession of state central heating stations for preventing problem situation with heat supplies in cities.

It should be reminded that in October, 2018, Naftogaz of Ukraine filed a lawsuit to Kyiv Economic Court against the Cabinet of Ministers of Ukraine in respect of indemnification of losses, totaling UAH 6.6 billion arising out in Q4 2015 from the government’s denial to create mechanism and the sources of compensation for performance of special obligations as to gas supplies by the company.

Reportedly, at the meeting on October 19, the Cabinet of Ministers approved decision to increase gas prices for population by 23.5% from 01 November 2018 so that Ukraine can obtain IMF loan.

Prime Minister Volodymyr Groisman stated that for over a year, he has been negotiating with IMF for removing this point from agenda. The lenders put forward demand to equate gas prices for population with the industry level.

As ET already wrote, within negotiations with IMF, the fiercest discussions were held on PSO format, under which NJSC supplies gas at reduced prices to selling intermediaries - gassbyts.

Naftogaz insists on the option, under which it will be able to sell gas to all supplies on the wholesale market, including gassbyts, on equal terms.

Currently, the gassbyts, which fall within the sphere of influence of Dmitri Firtash, are the only companies, through which the gas is sold to population.

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