The Prime Minister’s statement on saving the subsidies did not bring much optimism, even to representatives of the authorities, — Medvedchuk

Заявление премьера о спасительных субсидиях не вселило оптимизма даже в представителей власти, — Медведчук

Setting gas prices at 100% parity to the price of imported means that rates will now rise regularly as utility rates directly depend on a conjuncture in the world markets. This was stated by the leader of the Ukrainian choice” Viktor Medvedchuk.

According to the politician, claiming that the price 6879 USD per thousand cubic meters is economically justified and installed for years, is being evasive.

“Linking gas prices for the population to “import parity” will lead to the fact that upon the change of conditions in the world market upward (a similar trend is already clearly delineated) utility rates will continue to grow. And if today, in conditions of extremely low prices for oil and gas, the tariffs are already unaffordable for the vast majority of Ukrainians, it is difficult even to imagine what will happen after the world prices for oil and gas will soar to the heights of the past (for example: the average price at which Ukraine imported gas in 2013 amounted to over $ 400.)”, — says the leader of “Ukrainian choice”.

He also noted that the statement of the Prime Minister Groisman saving on subsidies is not much optimism, even to government officials.

“The Director of the Department of state social assistance Minsotspolitiki Vitaly muzichenko was forced to admit that the budgeted funds for grant payments simply may not be enough. “The number of subsidianes after raising the price of gas could rise by 50%”, — declared the official, and this means that more than 8 million households will need government assistance to pay the higher prices”, — said Medvedchuk.

The politician also said that even in the current situation, “Naftogaz of Ukraine” has successfully continued to reduce the cost of gas for industry.

“From may 2016 the price of natural gas for this category of consumers will be reduced by 8-10% (!) ― to 6651-7518 USD per thousand cubic meters (including VAT and tariff for transportation). Then there are private companies, owned by oligarchs, will pay even less than the population. But what else to expect from a Prime Minister who is convinced that “the oligarchs are the property of the Ukrainian state”?” — surprised Medvedchuk.

Analyzing the first steps of the new Prime Minister, the leader of “the Ukrainian choice” predicts that Groysman will become a worthy successor to the anti-social policies of the government of Yatsenyuk.

“Given the fact that the next rise in prices and tariffs will lead to a jump in inflation, the deterioration of the socio-economic situation in the country and will eventually be the cause of an epidemic of non-payments from the population, the current government has all the chances not only to repeat the sad experience Yatsenyuk (as the leader of the people’s distrust), but exceed it. However, as we have seen repeatedly, the people’s trust and popular support for the European integration team is not so important. For her, the main thing ― not to offend the representatives of PPG and to obtain financial support from lenders,” he said, Medvedchuk.