OREANDA-NEWS. May 06, 2013. A loss of Naftogaz Ukraine is attributable to the difference in price between the expensive Russian gas that Ukraine buys and low price for gas to utility companies. This was started by Vice Prime Minister of Ukraine Yuriy Boyko in an interview to the Inter TV channel.

Naftogaz has always carried on a considerable social burden ‘cause it only unprofitable field of activity is that Naftogaz buys gas at USD 400 under the Russian contract and sells it to municipal thermal power enterprises by 150 dollars. The difference lies heavily on Naftogaz," Yuriy Boyko said.

At the same time he stressed that Ukraine's President Viktor Yanukovych rejected the possibility of increasing gas prices for the population.

"When the question arose to increase rates or not, the position of President Viktor Yanukovych was: we can not translate this bonded contract on the shoulders of people. Therefore, the task now lays on Naftogaz by means of other, more profitable areas a production and sales of gas and gas transit," Vice Prime Minister said.

He stressed that Naftogaz is a large taxpayer and the activity of the company is totally transparent.

Naftogaz is state-owned company that pays taxes in full and is completely transparent in terms of taxation and payment to the budget. Moreover, for the first quarter the company paid about UAH 6 billion of taxes. That's more than last year," Yuriy Boyko said.