The Cabinet has no approved financial plan of Naftogaz for 2016, Babak

The “Samopomich Union” parliamentary faction received a reply from the Cabinet to their request for information on the financial plan of Naftogaz for 2016-2017.
“The conclusion is as follows: it is September already, and there is no financial plan for 2016, which is a direct violation of the Ukrainian legislation. In fact, presently there should have been a draft plan for 2017,” Aliona Babak, MP from the “Samopomich Union” faction, commented on the reply.
The government has not approved the gas balance since October 2015. The absence of the plan causes problems with the distribution of the amount of gas for import and with counting the amount of the gas that can be provided for by our own resources.
“Gas balance for 2015 shows that gas production in Ukraine was at the level of 14.5 billion m3. Interestingly, the plan for 2016 on the consumption of gas by population and teploenergo is 13.9 billion. That is, if the production was at the level of last year – net of production and technological losses of gas – we practically could provide the most vulnerable contingent of consumers with the gas of our own production,” said Aliona Babak.
“But the most striking thing was the evaluation of solvency of Ukrainian population – the evaluation was carried out by the example of only three apartments! Unlike this evaluation, we are referring to the figures of the Institute of Demography and Social Studies of the National Academy of Sciences of Ukraine, which indicate the negative impact of such a rapid growth of tariffs on the solvency of Ukrainians,” says Babak.
Such a reply from the government indicates that it is impossible to learn about the profit target or the loss ratio of state company Naftogaz, and the Cabinet decided upon the gas prices not taking into account these key indicators.
“Ukrainian legislation provides for two principles of price formation – it is either free or regulated. If prices are determined freely, this means these are market prices, if they are regulated, this means there is a state body which is guided by some methods in regulating prices. In our case we call the price of gas a market one even though it is set by the Cabinet which doesn’t apply any methods when setting the price,” explains the MP.

Alona Babak
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