Boxing Day on Red Square sets new Guinness recordSport July 23, 8:33
Joseph Dunford says Russia most military capable country of those posing threat to USWorld July 23, 4:57
Russia’s US envoy Kislyak steps down, his deputy to act as Charg d'Affaires ad interimRussian Politics & Diplomacy July 23, 1:33
Putin greets KamAZ-Master team - winner of Silk Way RallySport July 22, 15:20
Agreements on East Ghouta zone in Syria signed - Defense MinistryWorld July 22, 14:20
PAK FA offers practically unlimited opportunities to pilot - commanderMilitary & Defense July 22, 11:29
Ukraine's National Broadcasting Board issues fine to Public Radio for 0% Urkainian songsWorld July 22, 5:39
Femen movement activists faces 5 years in jail for trying to frustrate summit meetingWorld July 22, 4:38
Russian Deputy PM dismisses allegations he will arrive in Moldova on warplaneRussian Politics & Diplomacy July 22, 2:46
“Gas producing and gas supplying companies have been in a state of shock since Monday - the Ukrainian government has taken their clients away to give them to Naftogaz of Ukraine,” the Ukrainian publication Capital reported on Wednesday.
“The Cabinet of Ministers has made numerous attempts during the year to ‘press’ private gas producers, which are increasing gas production as distinct from state companies. It seems that it has now succeeded in its attempt: some companies are ready to halt gas production in winter,” the publication said.
The Ukrainian government’s resolution on natural gas purchases by industrial, power and heat generating enterprises obliges large industrial enterprises to buy gas only from Naftogaz from December 1, 2014 to February 28, 2015.
“Natural gas purchase from other supplies is prohibited,” the Ukrainian government warned.The government’s decision is a disaster for private gas producing companies, Poltava Gas and Oil Company Financial Director Yevgeny Palenka told Capital.
“Now they have to declare a force-majeure because it will be impossible to continue operation in new conditions. In July, the subsoil tax rates were raised sharply and the current decision has dealt a second blow. It seems that the Cabinet of Ministers has decided to destroy private gas production,” he said.
Private gas producing companies will now lose their clients with whom they have signed their contracts and will even “lose the right to transport their gas for pumping into storage facilities, which means they’ll be forced to halt extraction in the coldest months of the year and, naturally, stop paying taxes,” the financial director said.
Gas extraction will become “simply impossible physically and economically inexpedient” for private gas producing companies,” he said.
This situation will reduce the volume of tax collections while “some communities will simply be left without gas amidst winter,” the expert said.