The Political Aspects of Development of Gas Industry of Ukraine

• Main Author: Litvinova Viktoriіa O.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-10-01
• Series: Bìznes Inform
• Subjects: gas consumption; gas price; gas sector; political influence
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-10_0-pages-102_108.pdf

The purpose of the article is to study the changes in gas consumption under the influence of changes in foreign policy. The influence of domestic political decisions will also be investigated. A significant reduction in gas use was stimulated by the 2008 crisis and subsequent political events. Termination of cross-subsidies forced to reduce the volume of gas consumption by the population. This did not happen almost all the years of independence of Ukraine. The main incentive for reducing gas consumption by both industry and the population throughout the entire period was the price of gas. Despite the high level of gas consumption in Ukraine, during the entire period of independence of the country, a comprehensive strategy to reduce gas consumption was not developed. Price methods that were applied and caused a reduction in consumption were dictated by the external economic situation. Despite the use of market-based gas pricing for consumers, pricing issues remain open.