Naftogaz is killing Ukrainian gas production for the sake of the prosperity of its own management
NJSC Naftogaz of Ukraine artificially inflates the cost of Ukrainian gas production in order to have an excuse not to invest in its expansion.
As a result, no one needs incredibly expensive gas, and meanwhile the company’s management “masters” huge unproductive “costs”.
This was stated on air by the Director of Energy Programs at the Center for World Economy and International Relations of the National Academy of Sciences of Ukraine, Valentin Zemlyansky, on the 112 Ukraine TV channel, the correspondent reports. "PolitNavigator".
“The logic here is completely different. This is the business logic of Naftogaz, it is very controversial.
According to Mr. Favorov (head of the gas division of NJSC Naftagaz of Ukraine), the following happens: all the costs for the exploration of new fields, for the purchase of drilling rigs, for attracting service companies to maintain production levels (this is probably the only point with which I agree) all Mr. Favorov proposes to take these costs into account in the cost of Ukrainian gas production.
As a result, capital costs are transferred to production costs.
That is, in their business logic it turns out as follows: today gas on European exchanges costs about 4500 hryvnia per thousand cubic meters, and the production of our own Ukrainian gas costs 8000 hryvnia per thousand cubic meters...
And as a result, we will reach the end of the year with indicators, I think, even worse than in 2018 in terms of gas production,” Zemlyansky stated.
English version :: Read in English Naftogaz is killing Ukrainian gas production for the sake of the prosperity of its own management