Elimination of Gas Subsidies in Ukraine
Policy measure

As of 2005, energy subsidies in Ukraine as a share of GDP constituted between 15 and 20 percent (Ogarenko and Hubaeck, 2010). However, an involuntary end to the low price on natural gas from Russia in 2010 has meant an effective elimination of energy subsidies on this energy source.

Implementation

According to Osborn (2006), Ukraine will start paying the world price for gas as of 2010, meaning a fivefold increase in the price of Russian gas. This price increase was initiated in 2006. In 2005, Ukraine paid USD 50 per 1,000 cubic metres, which according to Russia was an outdated Soviet-style subsidy. Russia stated that the full market price was closer to USD 230 per 1,000 cubic metres. (Osborn, 2006)

Challenges
No identified challenges.
Outcomes
No identified outcomes.
References

Ogarenko, I. and Hubaeck, K., 2010. CO2 Emissions Reduction from Eliminating Energy Subsidies in Ukraine. International Scientific Workshop “Current Input-Output Studies in

Post-Soviet Countries” Moscow, October 28-29. Available at: www.iioa.org/pdf/Moscow/ppt/Ogarenko_Hubacek_Ukr%20subsidies_Moscow_2010.pdf.


Osborn, A., 2006. Moscow cuts off Ukraine gas in price row. The Independent. Available at: www.independent.co.uk/news/world/europe/moscow-cuts-off-ukraine-gas-in-price-row-521369.html.