OREANDA-NEWS. January 22, 2010. The Finance Ministry confirmed that Ukraine will need 60.89bn cubic meters of natural gas in 2010 (down 25%, y/y), of which 20.67bn cubic meters will be extracted in Ukraine, while 27bn cubic meters is to be imported.

Millennium Capital sees the news to be quite positive. Firstly, the reduction in natural gas consumption does not mean a reduction in the planned output level in 2010, since a lot of domestic producers, e.g. in metallurgy and agriculture, have reduced the natural gas consumption by around 15-20% in 2009. Secondly, the decrease in the imported gas consumption as compared to the previously announced 33bn cubic meters will save around USD 2bn for the government in 2010 and reduce Budget Expenditures.