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Gas tariffs in Ukraine will skyrocket, but this could have been avoided, – ex-minister Sayenko | Economy

Former Minister of the Cabinet of Ministers of Ukraine Oleksandr Sayenko told why gas tariffs have been growing in Ukraine since May and how the government has failed to create a gas market.

In the article for OBOZREVATEL Sayenko noted that today, during the rise in gas tariffs, when some suppliers announced prices above UAH 13 per cubic meter, excluding gas distribution and VAT, Ukrainians are told that prices are dictated by the market, and our model is a full-fledged gas market.

But this is basically a profanation, said Sayenko, because in addition to the list with various suppliers with very high and simply high tariffs, the Ukrainians received the same monopoly of suppliers who do not even try to create competition in the market.

“Oblgaz of the oligarch Firtash offer a cube of gas at UAH 7.99, and Naftogaz offers at UAH 7.96. The difference is three kopecks between suppliers controlling 83% of the market. It turns out that instead of real competition, they simply decided not to interfere with each other,” – Saenko considers.

According to the ex-minister of the Cabinet of Ministers of Ukraine, we again see an unsuccessfully played series. Therefore, the increase in tariffs since May was blocked by the dismissal of Kobolev and the supervisory board of Naftogaz, as well as the appointment of a new minister-savior.

“Ukrainians are again being told to wait until the heating season someone will come up with something in the market conditions and depending on the cost of energy carriers in European hubs. But no one says that the government has completely failed the energy efficiency program, which could reduce the amount in payments due to less consumption and efficient use of resources. Due to incompetence, a real and not a fake gas market was created, a full-fledged fight against monopolies is not being conducted. And communist slogans and untimely decisions of the caliber of price regulation for a certain period of time only slow down reforms, surprise Western partners, postpone financial support, which automatically leads to the loss of precious time, “said Sayenko.

He noted that as a result, all this translates into an increase in tariffs.

“But Ukrainians find themselves in worse conditions in front of challenges – with a reduction in subsidies and in an already damaged economy due to the coronavirus and a lack of professionals in the Cabinet of Ministers. Inadequate government actions resulted in the fact that debts for communal services in January-February grew from 73.6 billion to 82.5 billion UAH. Almost 9 billion. One can only imagine what awaits after the new tariffs, “- added the ex-Minister of the Cabinet.

According to Sayenko, a competent policy can be pursued – in summer gas is always cheaper, and Ukraine has the largest underground gas storage facilities in Europe with a capacity of 32 billion cubic meters.

“Nothing prevented this winter from selling to Ukrainians and industry the gas purchased in the summer of 2020 at UAH 3.5 per cubic meter, cheaper than even 6.99, in order to make it easier to go through this growth, but not to be substituted by regulation in front of the West,” summed up Sayenko.

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