OREANDA-NEWS. March 22, 2012. At the Government session addresses the issues of stabilizing the oil market: in particular, reduction of excise duty on light oil products and to create conditions for delivery of oil to Ukraine with a minimum amount of one million tons.

As the Prime Minister of Ukraine Mykola Azarov said, "quality of life in the country is defined well as by a price level and provision of goods of daily demand," and from this point of view the problem of oil prices has become particularly acute.

The PM emphasized that in recent days in the world market the trend has been determined a significant rise in oil. According to managing director of the International Monetary Fund, Ms. Lagarde, such a price level poses a serious threat to the global economy.

"We need flexibility to respond to this challenge," emphasized Mykola Azarov."After all it is raising prices and has been increased import duty on oil that is imported to Ukraine. This makes unprofitable the oil refining in domestic plants. Because of this situation it has already been stopped oil refining factories in Lysychansk and Odessa. There have been decreased the total volumes of oil refining in Ukraine."

The Prime Minister stated that in view of this course of events, the Government is now forced to take difficult decision.

In order to stabilize the operation of oil refineries enterprises and to intensify oil product market, it is need to do the two conditions: to create conditions for the import of oil in the minimum amount of 1 million tons and reduce excise duty on light oil products.

"Why I called this decision a difficult? Because it will cause the loss of planned budgetary revenues. And it is extremely difficult for the current year when the budget is tense and solves system problems," Mykola Azarov underlined.

At that he stressed: "On another part of the scales - start in work of the oil refining enterprises. And it is thousands of jobs, wages of people, contributions to the pension fund and price stability and saturation of the oil market. It is certainly important, especially when spring field works are starting."

The Prime Minister emphasized separately that the measures taken by the Government, are temporary.

"They will do exactly as long as will remain abnormally high price of oil," said Mykola Azarov. "That is why I described the reaction to the current situation as not easy, but flexible."