Cabinet suggests drastically reducing state support for Naftogaz in 2015
Ukraine's Cabinet of Ministers has suggested that Ukraine's Verkhovna Rada reduce state support for NJSC Naftogaz Ukrainy in 2015, through the issue of government domestic loan bonds, with a subsequent swap for additional corporate shares in the amount of UAH 31.5 billion, against UAH 96.61 billion in 2014.
This is stipulated in a draft national budget for 2015, which was tabled in parliament.
"According to estimates, NJSC Naftogaz Ukrainy's demand for funds to cover the gap [between the purchase price of imported gas and the price it is sold to thermal power plants] is estimated at UAH 31.5 billion in 2015," reads an explanatory note to the document.
Poroshenko Bloc faction leader Yuriy Lutsenko criticized the 2015 draft budget at a parliament meeting on Tuesday. In particular, he said that the government hasn't given up the idea of subsidizing Naftogaz, which means energy subsidies for high income consumers.
As reported, Naftogaz's deficit in 2014 is estimated at about UAH 110 billion.
The Verkhovna Rada approved the state support of Naftogaz through additional capitalization worth UAH 96.61 billion in 2014.
