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Government allocates $26 million to repay tariff difference to Kyivenergo

Source : 112 Ukraine

Such decision will facilitate the water supply in Kyiv and begin the heating season in time
16:04, 29 August 2018

Ukrainian photo

The Cabinet of Ministers has redeployed subvention in the amount of $26,07 million from the state budget to repay the tariff differences in Kyiv. Such decision was made at the Government’s session today, as 112.ua reports.

The Government amended the regulation #110 which concerns the provision of a subvention from the state budget to repay the tariff differences.

“Speaking of heating question I promised that we would help Kievans to get out of this difficult situation, we have been working with the colleagues in the Government and we found opportunities to support Kyiv. I think there will be no discord. It is really important to get ready to the heating season in time,” Prime Minister Volodymyr Groysman said.

Related: Total government debt shrinks by 0.7% to $75.7 billion in July – finance ministry

Due to this, Groysman entrusted the Ministry of Regional Development to arrange the relevant decision so that the Prime Minister could sign it.

The subvention will eliminate the state’s debt in the payment of compensation to Kyivenergo which will decrease the company’s debt to Naftogaz and will facilitate hot water supply in Kyiv.

Related: Ukraine's Government not to cancel subsidies for gas consumers without counters

Earlier, in 2017 the capital’s authority decided to terminate cooperation with Kyivenergo, which was transferred to a new enterprise Kievteploenergo. In April, the representatives of Kyivenergo stated that all the staff will switch over to Kievteploenergo.

It was expected that the municipal enterprise will receivables and payables of the company. However, on July 19 Kyiv Commercial Court refused to change Kyivenergo to Kievteploenergo as a respondent concerning Kyivenergo’s debts.

Related: Groysman forbids ministers to talk to Russia's representatives without Foreign Ministry consent

In its turn, Naftogaz stopped gas supply in Kyiv due to Kyivenergo’s debts, which make almost $178,5 million. Due to these debts Naftogaz refuses to sign the contract with Kievteploenergo on gas supply with the result that hot water supply in Kyiv was switched off.

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