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The company could apply payments by instalments until it starts selling gas, Kobolyev suggests.
CEO of National Joint-Stock Company Naftogaz of Ukraine Andriy Kobolyev says a shortage of assets can prevent the company from continuing to accumulate gas in its underground storage facilities (USFs) to level the negative consequences of a possible termination of Russia's gas transit via Ukraine from January 1, 2020.
"As of June 1, some 11.5 billion cubic meters [bcm] of gas has been accumulated in the Ukrainian USFs, which is 1.8 bcm up against the past year [as of June 1, 2018]. If we continue to accumulate gas at such rates, we will reach the required 20 bcm by the start of the heating season. Then we'll be ready for any actions by Gazprom, and Ukraine's position in the talks [with Russia's gas monopoly] will be defended. However, Naftogaz's current assets shortage may prevent this," he wrote on Facebook on June 6.
Among the factors provoking shortage of funds, Kobolyev mentioned a UAH 61.4 billion (US$2.9 billion) debt accumulated by regional gas companies and heat producers before the company, which is twice as much as is needed to properly prepare for the heating season. In addition, the company needs to pay dividends soon.
"Another factor of the deficit is the Cabinet's requirement to pay 90% of our profit as dividends by the end of June. Right now, when we need money to buy gas for the winter season. This is an extraordinary challenge for us. We have to choose whether to pay dividends now or protect [the country] against the crisis," he said.
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According to the CEO, the company could use the payment by instalments, until Naftogaz starts selling gas. He believes that another way out is to attract loans. To this end, the Cabinet' permission and its active participation as the sole shareholder are required.
"We have been filling [with gas] the underground storage facilities in line with the schedule. But if the liquidity problem is not addressed in the coming weeks, it will be impossible to purchase gas in sufficient volumes," Kobolyev summed up.
As UNIAN reported earlier, Naftogaz of Ukraine plans to significantly increase gas reserves in the country's underground storage facilities by the forthcoming heating season, up to 20 bcm.
Ukraine on April 5 started pumping natural gas into its USFs.
By the start of the 2018-2019 heating season, Ukraine had accumulated 17.2 bcm of gas, which was a record high natural gas stock over the past six years.
UNIAN memo. The current transit contract between Ukraine and Gazprom was signed in 2009 for a period of 10 years. Once it expires (from 2020), the Russian monopoly plans to minimize gas transit through the Ukrainian territory.