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Cheap utility gas cost Ukraine 54bn dollars in subsidies over 10 years

Although not a net exporter of oil or gas, Ukraine is among the world's top 10 countries in terms of subsidies.

Cheap utility gas cost Ukraine 54bn dollars in subsidies over 10 years

The population of Ukraine paid an equivalent of 10.9bn dollars for the consumed gas worth 64.5bn dollars in the period 2005-2015, deputy CEO Naftogaz of Ukraine Serhiy Konovets said as quoted by Interfax-Ukraine. Over that time, Ukraine has allocated the equivalent of 20.2bn dollars in monetary subsidies and provided $ 33.4bn non-cash subsidies to the population.

"Overall, it amounts to 54bn that we have spent over 10 years ... Ukraine is among the ten countries providing the largest subsidies in the gas sector, being the only one on this list that is not an exporter of oil and gas," Konovets said.

According to the official, of this sum, the compensation difference in the tariffs for businesses were 3.4bn dollars, subsidies for gas to utility consumers - 4.8bn dollars, compensation of losses to Naftogaz - 12bndollrs. In the meantime, the state has received 4.7bn dollars less in taxes, while Ukrainian gas producers lost 28.7bn dollars.

In addition, Naftogaz Ukraine’s lost another 5bn dollars in costs spent on the loan servicing, involved for the payment for imported gas.

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