Promise — not to marry: “Naftogaz” has deceived all of Ukraine

Обещать — не значит жениться: "Нафтогаз" обманул всю Украину

© REUTERS / Gleb GaranichIn November “Naftogaz of Ukraine” has increased prices for the population by almost 15 percent. For plants prices rose by 20 percent in the last month. And from January 1, the operator GTS will raise the cost of gas transportation, because of what a strategic company preparing for bankruptcy.

Jokes aside

The statement of “Naftogaz” on raising gas prices for the population to 4.9 thousand UAH per thousand cubic meters (excluding VAT and transportation costs) puts an end to the dispute about who actually makes key decisions in the country — the government or the fuel monopoly.In the spring of Prime Minister Vladimir Groisman demanded from state-owned companies to reduce tariffs and promised to dismiss Andriy KOBOLEV, the head of “Naftogaz”.
COBOL is still in office, and rates are rising. And if former Prime Minister Vladimir Groisman at least pretended to be making any effort to lower prices, the new government would have to do without.”Zelensky joked about the rates that they are high. Zelensky joked about “Rotterdam”, that is a corrupt formula. But direct promises he has given. Of course, people somewhere in the hints I want to see what they want to see” — explained the representative of the President of the government Andrey Gerus (this week lost posts).
“Naftogaz” binds the current price rise with rise in prices for imported fuel for the last two months — with 174,6 to 199,5 USD per thousand cubic meters. While Kiev ignores the proposal of the Russian “Gazprom” about the conclusion of the contract on direct delivery, which will cost a quarter cheaper.On one of local TV channels the head of the Ukrainian Ministry of energy Alexey Orzhel said: even if such an agreement appears, he “personally, as the Minister will exclude the discount from the market that we again did not have this imbalance”.It just does not want to reduce tariffs, and Ukraine has to choose: either to pay higher prices or to freeze. And it concerns not only apartments, but also social institutions: hospitals, schools and kindergartens.The fact that the debt of the population for fuel continues to increase. According to the expert on energy issues Valentin Zemlyansky, the total amount has already exceeded 14.8 billion hryvnias (more than $ 600 million).
If the debt is not extinguished, “Naftogaz” will cease to deliver fuel to local gas companies, and boiler stop. About the likelihood of such a scenario, the representatives of the monopolist was said in the beginning of October, warned that the risk are 116 companies, supplying major cities: Kyiv, Mariupol, Odessa, Kharkov, Zhitomir, and many others.

Blow to the industry

For Ukrainian enterprises, the price rose even more — by 20 percent. Meanwhile, the operator of the gas transportation network Ukrtransgaz (the former subsidiary of Naftogaz, isolated from its structure as a result of unbundling) is preparing another blow to customers.Since January 1, four times increase of the internal prices for fuel priming. As a result, each thousand cubic metres of gas will rise another 1.2 thousand UAH and will cost in the range of 7-8,6 thousand hryvnias without the VAT.”The additional cost of the Ukrainian gas consumers will be about 36 billion hryvnias. <…> This is a huge burden for companies thermal power complex and sensitive to fuel prices for industrial enterprises”, — outraged the Director of the Federation of employers of Ukraine Ruslan Ilichev.
Analysts say: most of new year’s “gift” of “Naftogaz” will suffer manufacturers of mineral fertilizers — “the Cherkassyazota”, “Rovnoazot”, “Dneproazot” and others. According to the President of the Union of chemists of Ukraine Oleksiy Golubov, these companies work with a margin of one to two percent, and another increase in gas prices, whose contribution to the cost of production reaches 80 percent, will stop production, which will lose their jobs about 20 thousand Ukrainians.Last year it was already with the company “Dniproazot” — the company was idle from may to December, and after a restart the back 25 percent of employees left to work abroad.
Ukrainian fertilizer will lose ground in the global market and will be driven by cheaper Russian warns Golubov. And the local farmers will have to buy the products of domestic chemical plants, a third more expensive, which in turn will greatly affect agricultural exports — one of the main sources of currency for the country.Alexander Forest

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