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Low-income citizens in Ukraine to get help to buy gas

Staff writer |
Low-income citizens in Ukraine will be compensated by the state for the introduction of a single gas price.

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Such a decision will encourage combating corruption in the gas area and an increase in gas production in Ukraine. Prime Minister of Ukraine Volodymyr Groysman stated this during a Government’s meeting.

"On gas prices. Once again I wish to inform all Ukrainian citizens that those citizens with a low income will be compensated by the state. You won’t spend more completely, and you will feel it," he stressed.

The Prime Minister emphasized that targeted assistance would depend on the income level of the person. According to him, citizens with a low income will pay about 10% for utilities, while those with a high income would pay the market price, said the Prime Minister.

The introduction of a single gas price will enable to start an increase in gas production in Ukraine from 2016. The Prime Minister also noted that implementation of policy on energy efficiency would reduce energy consumption. "In a few years people will feel that the situation changes and we will become a really energy independent state," he noted.

"Our main task is to stabilize the economy and ensure growth of the national economy in order to increase people's incomes. This is our key task," he stressed.

Volodymyr Groysman pointed out that the existence of preferential gas generated corruption abuses. In particular, the Prime Minister cited the example of a corruption scheme in which the existence of different prices gas was written off for the needs of population, but was sold to commercial structures at exorbitant prices, which brought billions in profits.

"However people with either palaces or small dwellings got the same price - that's not fair," he said.

Moreover, about 5 billion of gas, produced in Ukraine by private companies, was always sold at market price. In 2007-2013 these private companies received about 150 licenses, while the state-owned company JSC Ukrgazvydobuvannia got only 4 licenses at this time.

"I want to convey greetings to all those who led the Government from 2007 to 2013 years, who issued 150 licenses to private companies and only 4 public licenses to the state-owned company Ukrgazvydobuvannia.

"I have a question why and what for? What was that policy aimed at destruction of the state-owned company extracting gas?" highlighted Volodymyr Groysman.

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