Ukrainian Vice PM: EU Gas Cheaper Option

The Ukrainian party has warned Russian Gazprom that the country will minimize the volumes of purchase of natural gas pursuant to the extremely unfavorable contract, concluded by the previous Government, and increase volumes of purchase from other sources, in particular, from Europe at more favorable prices. This was announced by a Vice Prime Minister of Ukraine Yuriy Boyko in his interview with the Inter channel.

“The more gas we purchase from other sources, the less – due to “the bonded” deal, signed by the previous Government, which practically does not afford to develop to the economics of the country. We have warned our Russian colleagues at once: taking into account that European gas is cheaper for us, we will increase its purchases. There are no secrets here, we have said that to them clearly,” Yuriy Boyko explained.

He emphasized that the gas market in Ukraine had been liberalized pursuant to the requirements of the European Energy Community and various suppliers could work on that. “We receive gas cheaper than under the contract with Gazprom, so the flow of funds from the country is lower, and it is good for the economics,” he added.

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LNG World News Staff, April 29, 2013