That's besides direct revenues from transit / Photo from UNIAN
Earlier, Naftogaz CEO Andriy Kobolyev said Ukraine would get at least US$7.2 billion from Russian gas transit over the next five years.
The positive effect on the Ukrainian economy from Russian gas transit to Europe via Ukraine in five years will reach about UAH 150 billion (US$6.3 billion), that's besides direct revenues from gas transit as such, says CEO of Gas Transmission System Operator of Ukraine (GTSOU) LLC Serhiy Makogon.
According to Makogon, this figure is composed of several components. In particular, entry tariffs from Ukrainian gas producers will decrease by 75% compared to the tariff that would have been set without gas transit. Accordingly, such companies will have the opportunity to invest in their development.
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"That is, the entry tariff from enterprises of the gas producing industry was planned at UAH 400 [US$16.79], now it will be about UAH 100 [US$4.20]. Accordingly, producers will save on the reduction a total of about UAH 27 billion [US$1.1 billion] within five years. That is, the gas producing industry will be able to invest US$1 billion in additional production and boost output," he said.
Moreover, Ukrainian consumers also saved thanks to the conclusion of the gas transit contract, as their gas tariffs are 50% down from those which would have been with zero transit.
"It [tariff] was planned at UAH 289 [US$12.13], but it will be UAH 124 [US$5.20]. Last year, it was UAH 157 [US$6.59], that is, in fact, we even cut it by 20% for Ukrainian consumers. And this is a tariff for both industry and households. The industry will save about UAH 33 billion [US$1.4 billion], while the households will save about UAH 15 billion [US$629.5 million]," he added.
Makogon also noted a significant reduction in tariffs for gas imports from Europe. The import tariff is set at US$4.45, which is 75% down from the expected US$16 and lower than US$6.28 set in 2019.
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"We see that the tariff burden is reduced by 75%, which will allow our economy to become more competitive. So, the company will have additional funds to invest in its development and increase salaries," Makogon summed up.
As UNIAN reported earlier, on December 30, Ukraine and Russia signed a new gas transit contract for a period of five years, obliging Russia's Gazprom to pump a minimum of 65 bcm of gas via Ukraine in the first year and 40 bcm in the next four years.
On December 31, Naftogaz CEO Andriy Kobolyev said Ukraine would get at least US$7.2 billion from Russian gas transit over the next five years.
The parties may extend the contract for another ten years.