Ukraine to buy expensive import gas as its own production decreases, - expert

Source : 112 Ukraine

This, in turn, will have a negative impact on food prices
20:02, 13 September 2021

Open source

The lowering volumes of gas production in Ukraine will force the government to procure the fuel abroad on the record-high prices. Director of ExPro Consulting Hennadiy Kobal said so in a commentary on September 13.  

"There will be nothing instrumental to reduce the prices. Thanks to the fact that last year, the underwater gas storage in Ukraine was filled with the gas of domestic production and the gas procured during the period of low prices, Ukraine had more favorable price situation as Europe faced the period of growing gas prices last summer. Our enterprises purchased gas for a lower price than their European colleagues", Kobal said.  

Related: Accumulated gas reserves in underground storage facilities reached 19 bcm,- Naftogaz CEO

The expert claims that the growing gas and electricity prices will affect the prices for grain, flour, bread, sugar and other food products.  

In January-August 2021, Ukraine cut the volumes of gas production by four percent, compared with the volume observed last year - down to 13 billion cubic meters. According to ExPro Consulting, this is the lowest output in the last four years.

Related: State Department warns of gas shortages threat in Europe this winter due to Russia’s actions - Financial Times

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