Cabinet proposes to increase compensation from 2009 budget to Naftogaz by UAH 6.11 b

The Ukrainian cabinet has proposed to increase the compensation for the difference between the purchase price of imported natural gas and the price charged to heat supply companies and budget organizations from the 2009 national budget to the national JSC Naftogaz Ukrainy by 4.8 times, or by UAH 6.11 billion, to UAH 7.725 billion.

According to draft amendments to the 2009 national budget and some other laws submitted by the cabinet to the parliament on Monday, an additional UAH 5.33 billion is needed to compensate for sales of gas at the low price at UAH 593.45 per thousand cubic meters sold to heat supply companies, and in total – UAH 6.94 billion.

The calculation is based on a forecast of consumption of 8.8 billion cubic meters of gas, with the price of the imported gas being $179.50 per thousand cubic meters and the hryvnias exchange rate UAH 7.70/$1.

The price of imported gas of $179.50 per thousand cubic meters is from last year, while in Q1, 2009 Naftogaz has been buying gas for $360 per thousand cubic meters, and the government forecasts an average weighted price of imported gas at $228.8 per thousand cubic meters over the whole year.