REUTERS
The Ukrainian government has decided to create a stabilization energy fund worth $1 billion, which could be used to buy natural gas from abroad, according to a government resolution dated June 24, 2015.
"A stabilization (reserve) energy fund worth $1 billion should be created in 2015," the resolution reads.
According to the resolution, the fund should be formed by oil and gas giant NJSC Naftogaz of Ukraine in keeping with agreements to be concluded with foreign creditors against state guarantees.
"Money from the stabilization (reserve) energy fund shall be used by OJSC national joint-stock company Naftogaz of Ukraine to buy imported natural gas, services of connectors and access to the gas transport networks, transportation and storage of natural gas in keeping with contracts concluded by the said company with the suppliers of such commodities, works and services," the resolution reads.
The natural gas to be bought at the expense of assets from the stabilization fund shall be used by Naftogaz in keeping with separate resolutions to be issued by the Cabinet and shall be stored in underground storage facilities.
According to the resolution, the Energy Ministry shall report to the Finance Ministry within the agreed deadline on the use of money from the stabilization fund. The Energy Ministry shall also control the use of assets from the stabilization fund, purchase of imported natural gas and monitor the financial condition of NJSC Naftogaz of Ukraine.
As UNIAN reported earlier, since March 2015 Ukraine has been in talks with the European Bank for Reconstruction and Development, the World Bank and other international financial institutions regarding the provision of loans required to pump gas into Ukraine's underground storage facilities during the summer season, thus ensuring there is the necessary volume of the commodity for the next heating season, as well as ensuring uninterrupted transit of Russian gas to the EU.
It is estimated that Ukraine needs about $1.5 billion to secure for necessary gas reserves in its underground gas storage facilities for the next heating season.
According to Ukrainian Energy Minister Volodymr Demchyshyn, Ukraine needs to accumulate 19 billion cubic meters of gas in its underground storage facilities by the next heating season.