17:02 06.03.2015

No quick deal on Russian gas supply needed – Demchyshyn

2 min read
No quick deal on Russian gas supply needed – Demchyshyn

Ukraine wants to reach an agreement with Russia on "summer package" gas supplies this month but sees no need for making a quick deal, Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn said to journalists after trilateral Russia-Ukraine-EU talks had ended.

"Why not? [Our] negotiating experience is very massive. Generally, I think there is a big hope that at one or two meetings that will be held in the coming three weeks the agreement can be reached. In fact, Ukraine has no critical need to make quick agreements and Gazprom clearly understands it. We are now in quite a strong position," he said when answering a question on if the parties soon reach an agreement.

He said that Ukraine has received the necessary volume of reverse gas from Europe and was decreasing the volume of gas consumption.

"Gas volume from EU is sufficient, gas consumption in Ukraine is sharply decreasing as Ukrainian Government changes to the price policy pays much attention to energy efficiency and the market structure is changing. As significant changes are taking place, consumption in the last two months fell nearly by 15-20%. And we expect this trend to continue. Indeed, in the nearest time we expect the decision on lowering gas volumes consumption by Teplokomunenergo (thermal generation) to be taken" Demchyshyn said.

He mentioned that if there is low domestic gas consumption and reverse gas flow from Europe, Ukraine would have enough gas supplies for the summer.

"I think gas consumption will be further lowered. Accordingly, the volume of natural gas production in Ukraine – 55 million in 24 hours plus additional reverse – up to 40 million no less, will be enough to balance consumption during the summer period at least" he added.

Demchyshyn also said that Ukraine hadn't refused to buy gas from Russia, but mentioned that Russian gas is more expensive.

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