Rada Allocates UAH 111.1 Billion To Naftogaz From State Budget To Compensate For PSO Expenses In Gas Market

The Verkhovna Rada has allocated UAH 111.1 billion from the state budget to the Naftogaz of Ukraine national joint-stock company to compensate for the company's expenses related to its performance of public service obligations (PSO) in the gas market, including through international donor assistance.

255 parliamentarians voted for the adoption of bill No. 7429 as a whole, with the minimum required 226, Ukrainian News Agency reports.

In particular, the Rada allocated UAH 201.1 billion to the Ministry of Energy, including:

- UAH 111.1 billion - for compensation of economically justified costs of Naftogaz of Ukraine, which is entrusted with special obligations to ensure the public interest in the process of functioning of the gas market (the entire amount will go directly to this company);

- UAH 76 billion - for the program to settle debts to the subjects of the natural gas market, namely gas supply and gas distribution companies in accordance with the previously adopted special law (such enterprises also include companies from the Naftogaz group).

The Rada sent UAH 14 billion to the Ministry of Development of Communities and Territories - for subventions to local budgets to compensate for the difference in tariffs for thermal energy and services for the supply of thermal energy and the supply of hot water.

Financing of relevant expenditures is supposed to be carried out, among other things, by raising more than UAH 125 billion from the European Union, foreign governments, international organizations, donor institutions.

As Ukrainian News Agency earlier reported, in July, the Cabinet of Ministers, as part of the Regulation on the Public Service Obligations (PSO), extended the obligation of Naftogaz Trading LLC to supply gas to thermal utilities for heating and hot water supply at a price of UAH 7,420 per 1,000 cubic meters (including VAT, excluding the tariff for transportation services and the factor applied when ordering capacity a day ahead) until April 2023.

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