13:58 28.10.2014

Ukraine requires $2 bln to buy 7 bcm of gas by end of heating season, says finance ministry

2 min read
Ukraine requires $2 bln to buy 7 bcm of gas by end of heating season, says finance ministry

Ukraine should raise financing of around $2 billion to additionally buy 7 billion cubic meters of gas by the end of the heating season, Finance Minister of Ukraine Oleksandr Shlapak told reporters at the A Fresh Look at Ukraine international investment conference organized by SP Advisors in Kyiv on Tuesday.

"The upper limit set for purchase is around 7 billion [cubic meters] by the end of the heating season. If 7 billion cubic meters are multiplied by $400 [per 1,000 cubic meters] you'll receive the sum of around 42 billion we would have needed. Now this concerns at least $1 billion to secure [payments]," he told reporters.

Shlapak said that Ukraine is holding negotiations on borrowing of the funds with the European Union, the European Bank for Reconstruction and Development and International Finance Corporation, although the country has not reached concrete results.

Shlapak said that this concerns the backup volume of gas.

"Each wants to secure oneself, including our dear Naftogaz. We're working on the possible additional financing. We're looking everywhere where it is possible," he said.

"We don't need additional cubic meters of Russian gas. We should learn to live with gas we have. We have enough gas. Yes, we won’t show off but we'll be able to live," he added.

He said that the government has opened all opportunities for buying gas by industrial enterprises, and own gas extraction and its volume in the underground storage facilities is enough to fulfill liabilities of the state to the public.

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