Vasile Tofan
The Prime Minister stated that Ukraine intends to lift the moratorium on natural gas exports in order to generate additional revenue for the state budget.
“It is true that Ukraine has a gas surplus. Until now, there has been a moratorium on gas exports from Ukraine. Very recently – just a day or two ago, in fact – they put forward an initiative to lift this moratorium, because they too need revenue for the budget. And, indeed, they do have a certain surplus of gas. Gas in Ukraine is extracted in two regions — Poltava and Ivano-Frankivsk. The volumes available for export are not very large. I have heard a figure of around 500 million cubic metres of gas, which is exactly about what we need for one gas year on the regulated market,” the Prime Minister told Cinema1.
According to him, any potential supplies to the Republic of Moldova will be negotiated on terms close to market conditions.
“We must understand that Ukraine will sell this gas at market price. If they can sell gas to the Poles at a higher price, why would they sell it to the Moldovans at a lower price? I’m going to Kyiv – I won’t announce the date just yet – and we’ll discuss this matter. You should understand that the terms will be close to market conditions,” said the head of government.
The Prime Minister believes, however, that the Republic of Moldova could secure a more favourable price if it were to negotiate a long-term contract.
“How can you lower the price? Through a longer-term commitment. Ukrainian gas will be cheaper anyway, because it’s very close by. If, for example, we manage to agree on a structure whereby we commit to a longer period – three, four or five years – and offer them a purchase guarantee as well, then the price could indeed be lower,” explained the Prime Minister.
“The state cannot gamble”
The Prime Minister argues that the country must secure part of its natural gas requirements through medium- and long-term contracts, whilst another part should be purchased on the exchange, depending on price trends. The head of government warned that the state cannot afford to take risks by banking on a possible fall in gas prices.
“If the Strait of Hormuz is unblocked, if we have a mild winter, or if there are other factors, such as a slowdown in the Chinese or European economies, gas consumption could fall and prices could drop. But the state cannot gamble. We must secure a portion of our gas supply for the medium and long term, and purchase the rest on the market,” the Prime Minister stated.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
Follow our updates
Have information for the newsroom? Share it with Logos-Press
Comments
0No comments yet. You can start the conversation.
Comments are open to readers with a Logos Press account.
Sign in to comment