WHAT'S WRONG WITH YULIA TYMOSHENKO`S GAS CHARITY?

28.11.2018

In the autumn of 2018, against the background of increased speculation about gas prices, Yulia Tymoshenko has started to repeatedly declare the possibility of reducing prices, especially for the population.

The problem is that Ukraine needs to increase own production of gas. According to the estimates of the Ukrainian Institute for the Future, Ukraine needs a minimum of 3-3.5 billion dollars of investment to become self-sustaining in terms of gas supply.

According to the results of 2017, net income after taxes per 1 cubic meter of UGV amounted to $81.24 – this is the minimum required amount for increasing investment in real gas production growth.

Tymoshenko suggests halving the gas price. But then, the net income (after taxes) from gas extraction activities and selling of 1,000 m3 of gas will amount to $ 38.95, which will make it impossible to invest in the industry.

Andrian Prokip, the energy expert of the Ukrainian Institute for the Future