Ukraine saved 2 billion hryvnas ($250 million) last month after getting a discount on gas supplies from Russia, Ukrainian Prime Minister Mykola Azarov said Wednesday.
Ukraine will invest the money it saves from the gas-pricing agreement in energy-efficiency projects, Azarov told the Cabinet. The government must offer incentives to companies to encourage such projects, he said, without elaborating.
Russia, which supplies about 60 percent of Ukraine’s gas needs, agreed April 21 to reduce the price of shipments by 30 percent through 2019. In return, Ukraine allowed Russia to keep naval forces at its Sevastopol port until 2042, with a possible five-year extension. The current lease ends in 2017. Ukraine will also increase gas imports from Russia.
International financial institutions, including the International Monetary Fund, have urged Ukraine to raise gas prices for households. Azarov reiterated the government’s resistance to such a move.
Azarov also said Ukraine would consider a proposal from Prime Minister Vladimir Putin to “unify” Naftogaz with Gazprom.