Liberalization of the Gas Market is Necessary to Overcome the Deficit in Ukraine

Ukraine must expedite the liberalization of the gas market to attract Ukrainian and European traders and industrial consumers, in order to avoid a potential gas deficit and financial difficulties in preparing for the next heating season. This opinion was expressed by Volodymyr Omelchenko, director of energy programs at the Razumkov Centre.

This is reported by AgroReview

The Need for Gas Imports and Risks of the Existing Model

According to the expert, to timely fill the underground gas storage facilities (UGS), Ukraine needs to import about 25 million cubic meters of gas per day throughout the entire injection season. Approximately €2 billion is required for this, but Naftogaz of Ukraine is unable to attract such funds on its own.

Omelchenko noted that the current market model, in which Naftogaz performs special obligations (PSO) and sells gas at reduced prices to the population and businesses, has already exhausted itself. This leads to the company being forced to import gas for the population at a loss, negatively affecting the economy and the stability of supplies.

Prospects for Reforms and Involving New Participants

The expert is convinced that the only correct solution is to involve other participants in gas imports through market liberalization. This will reduce dependence on monopoly and ensure supply stability in the future.

Additionally, Omelchenko suggested revising the approach to the use of state gas production to stabilize prices for the population at a stable level and reduce financial burdens on the state.