Ministry of Agrarian Policy has approved 6 803 companies to buy natural gas at a reduced price
On January 5, 2022, the Ministry of Agrarian Policy and Food of Ukraine (MAPFU) approved a list of food producers to buy natural gas produced by
Ukrainian private oil&gas companies at a fixed, reduced price .
The list of the MAPFU numbers 6 803 enterprises, including:
- poultry and egg producers - 1 070 enterprises;
- sunflower and animal fats oils - 1 750 enterprises;
- milk processing and producers of butter and cheese - 930 enterprises;
- flour producers - 1 300 enterprises;
- bread producers - 1 750 enterprises;
The full list of the companies can be found here (in Ukrainian).
On December 30, 2021 the Cabinet of Ministers (CMU) of Ukraine adopted Resolution №1435 which set "for the period of quarantine, but not longer than April 30, 2022" the maximum 24% surcharge to the cost of natural gas of Ukrainian production (excluding rent) when supplied to companies producing food products of significant social importance. The trade surcharge for the transmission of natural gas of Ukrainian production to meet the needs of the above-mentioned economic entities is set at a level of not more than 1%. The 20% of the volume of natural gas produced by the Ukrainian private companies is included into the list of products to be traded exclusively on energy commodity exchanges.
According to the Resolution №1435 of the CMU, the natural gas will be sold on the Ukrainian Energy Exchange (UEEX).
According to ExPro estimates, private producers of natural will be forced to sell about 80 mcm-90 mcm of natural gas on the UEEX every month.
One may remeber the Association of Gas Producers of Ukraine to have criticized the CMU's initiatives, emphasizing that state regulation of the price of the locally produced natural gas is a completely non-market mechanism endangering the hault, or even lost, of the national gas