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In order to improve the efficiency of the gas market, ensure its reliability and investment attractiveness, the Cabinet of Ministers supported the initiative of the Ministry of Energy and Coal Industry to abolish the order mandating injection of at least 50% of the gas produced by Ukrainian private companies in the Underground Gas Storages (UGS) from July 1 to Oct. 15, 2013, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
During the discussion of the government’s order - which has been approved on June 19, 2013 - with representatives of the gas companies and the American Chamber of Commerce in Ukraine, serious problems associated with implementation of the document were raised.
The Ministry of Coal also noted that the implementation of the order's requirements have a negative impact on the stability of the gas supply to consumers, as well as on the credibility of government policies with investors and international organizations. As a consequence, this will deteriorate the investment climate in Ukraine and in the oil and gas sector.
Ukraine's government has decided to rectify the situation and prevent possible complications with private investors, by canceling the measure, which had required the injection into UGS of 50% of gas produced.
But even without the participation of private companies, Naftogaz Ukraine has pumped a sufficient amount of gas into underground storage facilities to successfully provide for the heating season and stable transit of the Russian gas to the EU consumers.
Eduard Stavitskiy, Minister of Energy and Coal Industry of Ukraine, said some 18 billion cubic meters of the blue fuel are currently in storage. This volume is envisioned in the gas balance, which the government approved in 2013.
"Transit is reliable and is carried out in full accordance with the applications submitted by Gazprom and the European countries. Ukraine fully meets its obligations," Deputy Prime Minister Yuriy Boyko said.