Kyiv, July 8 (Interfax-Ukraine) – Public joint-stock company Ukrgazvydobuvannia in January-June 2014 increased sales revenues by 8% or by UAH 307 million year-over-year, to UAH 4.321 billion, Ukrgazvydobuvannia Head Serhiy Kostiuk said at a press conference at Interfax-Ukraine on Tuesday.

"Over the past three months we increased revenues by over UAH 500 million… The main source of increasing revenues is the increase in selling prices. Of course, the main factor is the increase in the price of liquefied gas – it has grown by over four times [revenue from sales of liquefied gas grew by 2.3 times in January-June, to UAH 505 million). Changes in the prices of other fuel were seen," he said.

He said that the selling price of natural gas is still set at the level of UAH 349.90 per 1,000 cubic meters (value added tax not included), which is lower than the production cost, and payments for gas bought by Naftogaz Ukrainy are worsening.

"I have to give a not-so-rosy picture with regard to sales of our key product – natural gas: while in April a trend of reducing debts by Naftogaz Ukrainy to Ukrgazvydobuvannia was seen, today we have a trend of growing debts. In particular, the debt for the first half of the year has grown sharply. June was a very difficult month from the point of view of payments. The debt has grown and totals UAH 2.844 billion," Kostiuk said.

Due to the low tariff for natural gas and the bad level of payments by Naftogaz Ukrainy, Ukrgazvydobuvannia is chronically short of financing of capital investment.