Ukraine doesn’t want cheaper Russian gas, ex-finance minister claims

Ukraine shouldn’t strive to bring down the price for the Russian gas. Instead, it should push for higher transit tariffs. The Kremlin offered us European prices for gas but Ukrainians didn’t demand equally European transit tariffs. Moreover, the current tariff was modeled on the tariff at the border with Italy, ignoring the fact that Ukraine buys gas at the border with Russia, or 2.500 km longer distance, ex-Finance Minister Viktor Pynzenyk told ZIK in an exclusive interview March 17.

Naftohaz Ukrayiny should stop acting like a charity fund. Due to low gas prices for the populace, Ukrainians think that the state covers the difference. No, it is the Ukrainians who cover the difference from their pockets, Pynzenyk said.
The current gas pricing policy is not only cost-intensive but also immoral. Paradoxically, the rich Ukrainians who build posh homes are paying the same price the poor Ukrainians have to pay. Prices for well-off segments of population must be raised, Pynzenyk believes.
Viktor Pynzenyk was very critical of the idea to form a gas-pumping concession with Russia, saying there are conflicting business interests as gas sellers are eager to have higher prices for gas and gas transmitters to have higher tariffs for pumping gas.
Ukraine gas pumping system can well earn the money for its modernization itself. The more so that Ukraine has unique infrastructure, underground gas reservoirs, located near Europe’s eastern borders. These reservoirs are no less valuable an asset than the pipe itself, Pynzenyk argues.

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