Ukraine Slashes Gas Use As Subsidies Phased Out
Rukhshan Mir (@rukhshanmir) Published January 02, 2017 | 07:20 PM
KIEV, Jan 2 (APP - UrduPoint / Pakistan Point News - 02nd Jan, 2017 ) : Ukraine on Monday reported a one-third drop in its use of natural gas and general energy savings that will be cheered by its financial backers from the International Monetary Fund.
The IMF has long identified Ukraine as one of Europe's most inefficient countries when it comes to fuel consumption. A large part of the problem came from state subsidies that homes and enterprises had been awarded since Soviet times.
That assistance was a vast drain on the budget and allowed Ukrainians to use gas cheaply and without conservation. This all changed last year as the government started to push up prices levied on home users.
Many people saw their gas and energy bills double -- a change that prompted some protests on the streets. Prices on companies had gone up even earlier. Data released by Ukraine's main energy transport company showed gas use falling by 32.7 percent last year.
Ukraine has not imported any blue fuel from Russia in 13 months because of a freeze in ties between the two neighbours and disputes over prices. Most of the imports came from Slovakia. Ukraine also imported much smaller amounts from Hungary and Poland.
The IMF has long demanded energy savings to be part of Ukraine's austerity measures that were approved when the Fund awarded cash-starved Kiev a $17.5-billion (16.7-billion-euro) rescue package last year.
Ukraine's state energy company said last week that it could survive the winter without purchasing any Russian gas. Brussels is still trying to find a compromise between Kiev and Moscow that would reduce Ukraine's demand from EU countries and lower prices for European consumers.
Yet some analysts noted that the gas consumption figure was not all good news. Ukraine's economy shrank by nearly 10 percent last year and output at the country's giant steel and chemical companies fell by even greater amounts.
The reduced production meant that companies used less natural gas for conversion into energy. The Ukrainian economy is budgeted to grow by three percent this year and analysts will be watching closely to see what that does to gas consumption.
A continued decline would mean that industries and homes really are being more efficient. A rise in gas use would imply that neither have done as much to cut down on wasteful consumption as the IMF had hoped.
Related Topics
Recent Stories
Aeon & Trisl signifies back-to-back successes by securing the No. 1 Award at the ..
Attaullah Tarar’s success notification from NA-127 challenged
PSX witnesses positive trend today
PM Shehbaz meets CJP Isa to address IHC judges’ concerns
Pakistan vows to bring to justice perpetrators, abettors of Bisham terrorist att ..
May 9 riots: SC allows conditionally to military courts to deliver reserved verd ..
Interior Minister arrives in Peshawar after Shangla suicide attack
OPPO Reno 11 F 5G: Setting New Records as Pakistan's Most Beloved Smartphone Lin ..
PCB dismisses FICA's claims of unpaid dues in PSL
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
Today Gold Rate in Pakistan 28 March 2024
Niger says US to submit plan to 'disengage' troops
More Stories From World
-
Japan Moon probe survives second lunar night: space agency
4 minutes ago -
Blond vs pink: French-Swiss battle for 'fourth' chocolate
44 minutes ago -
Zangnan has been China's territory since ancient times: Spokesperson
54 minutes ago -
Nicoll relishes her shot at double Olympic stardom
1 hour ago -
Four killed in German motorway bus accident
1 hour ago -
French bill seeks to ban hair discrimination affecting black women
1 hour ago
-
Gabon's post-coup reform efforts under fire
2 hours ago -
Meet China's first corgi police dog
3 hours ago -
Singapore sees sharp decrease in PE investment last year
3 hours ago -
China's role model selection for Q1 2024 kicks off
3 hours ago -
Australians tighten belt as higher grocery prices bite: survey
3 hours ago -
ChiNext Index closes higher Thursday
3 hours ago