Ukraine in for Russian gas price hikes in January 2009, Anatoly Hrytsenko predicts

April25200817:24

In January 2009, the price for Russian natural gas for Ukraine will be raised sky-high. Meanwhile, Ukraine’s alleged dependence on Russian gas is a cock and bull story. Unlike other European countries Ukraine is not tied so closely to Gazprom, former defense minister and head of VR committee on national security and defense Anatoly Hrytsenko told ZIK Apr. 24.

Ukraine can make do with its own 20 billion cubic meters of domestic gas extraction. In addition, Ukraine owns huge underground gas reservoirs. Ukraine’s gas pipelines potential is not fully tapped. Before, Russia paid Ukraine for its transit with 28 billion cu. m of gas. Strangely, this year, we got only 9 bn cu. m., Hrytsenko noted.

Presently, Ukraine has to take austerity steps to beat the looming crisis, primarily, by stimulating energy-saving. Other reforms, in Hrytsenko’s opinion, must focus on the tax code, changes in the budget, social welfare programs and state procurement.

Comments

01:5226.04.08 Hryhoriy
- By 2012, Ukraine will need less than 20% of it's natural gas from Russia. Alternative routes will by then be firmly established and NATO will guarantee pipeline protection for all collaborative countries participating. For the same reason, infrastructure for future Ukrainian/NATO air force base in E. Ukraine is proceeding on schedule.