A 4.5-fold increase in gas transportation tariffs threatens Ukraine’s energy security, – Petrenko

The increase in tariffs for gas transportation in Ukraine will affect energy security and the economy as a whole. This was stated by the executive director of the Association of Gas Production Companies of Ukraine, Artem Petrenko.

According to Petrenko, a multiple increase in tariffs is expected. “If we compare with the current figures, this will actually be a 4.5-fold increase,” he said.

Petrenko emphasized that although there is a moratorium on price increases for the population, the industry will feel the consequences of this decision.

“In fact, we will have an increase in the price of the transportation service. Accordingly, this may lead to some increase in the price of gas, which will accordingly affect the companies, the economy, the commercial segment, because gas is more expensive, and if it is more expensive, then goods and services are also more expensive “, he explained.

Petrenko also drew attention to possible consequences for the mining sector, in particular for state-owned companies.

“This will lead to the fact that companies will have less working capital, especially state-owned companies and the same Ukrgazvydobuvannya. They will pay more for the services of the gas transportation system, and they will have less funds to invest in the industry,” Petrenko added.

In his opinion, such changes can negatively affect the country’s energy security and revenues to the budget.

“Accordingly, we will not have an increase in production, or it may start to decrease. Of course, this will affect the energy security of the country, plus the issue of taxes. The less production, the less rent and, accordingly, deductions to the state and local budgets,” Petrenko concluded.

Earlier, representatives of the European Business Association emphasized the lack of transparency in the process of setting tariffs for gas transportation and warned about the negative impact of tariff increases on the industry.