Gas price for industry to be 'moderate' if no dollar switch, Tymoshenko promises

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The price of Russian natural gas for Ukrainian population will remain unchanged, Prime Minister Yulia Tymoshenko said in the Shuster LIVE program on the Ukraina TV channel Friday, the government website says.

"The price of natural gas for people in Ukraine will not change. As the Prime Minister, I and my government took the stand that the gas price for the population cannot be increased," Yulia Tymoshenko emphasized, stressing that the global financial crisis seriously hurt Ukraine, so the authority must be very careful about changing its pricing policy in order to save people's budgets to a certain extent.

In the Prime Minister's words, SJSC Naftogaz of Ukraine will make no additional gas markups. "But the price in the hryvnia will depend on the hryvnia/dollar exchange rate (set by the NBU). We are fighting for the rate speculations to stop," the head of government emphasized adding the NBU is continuing its exchange rate experiments despite the difficult economic situation.

Tymoshenko also noted that the rate of UAH 6 - 6.5 per USD 1 will make it possible to have a moderate gas price for industry. In her words, the current exchange rate leads to inflation, and it will be absolutely incorrect now to raise the gas price for the population.

The Prime Minister reminded that, as a result of the negotiations and constructive position of the Russian Federation, Ukraine received a 20-percent discount on the European price of natural gas, and managed to buy 11 billion cubic meters of gas at a special price of USD 153.9 per 1,000 cubic meters. "This makes it possible for Ukraine to have Europe's lowest gas price," Tymoshenko added.

The head of government stated that the price of USD 228.8 on the Russian natural gas for Ukraine is "Ukraine's great victory and demonstration of the friendly position of the Russian Federation on Ukraine."

UKRINFORM