OREANDA-NEWS. September 13, 2013. Modernization of petrochemical industry is a path to energy independence. This was stressed by Prime Minister of Ukraine Mykola Azarov at a meeting of the Cabinet of Ministers.

The Head of the Government noted that among the most important tasks of the program of activization of the economy basis task is the task of energy independence and energy efficiency. More times than not Ukrainian enterprise substantially inferior competitors precisely because of the excessive cost of energy. The competitiveness of domestic goods is a hostage to unfairly gas contract with Russia. By the way, the chemical industry clearly demonstrates this, where the cost of raw materials and energy make up nine-tenths of the cost.

The cost of energy eats funds that could be spent on modernization and development of production.

At the same we have excessive import duty on Russian oil. Owners stopped work of Kherson, Odesa, Nadvirnyansk, Drohobych and Lysychansk oil refineries in recent years. Low depth of oil processing at domestic factories and unacceptably small compared with modern technology, the output of light oil does not provide the profitable work on very expensive Russian oil. Likewise the profitable work of chemical enterprises on a very expensive Russian gas is impossible.

“Such a State of basic sector of the industry is absolutely unacceptable risk to our country. The President of Ukraine gave the Government a clear task: it should be eliminated the technological backwardness of petrochemical industry and effectively diversify the energy supply,” Mykola Azarov stressed.

Therefore, the strategic direction of the Program of Activization of Economic for 2013-2014 and moreover, the decade ahead are: deep modernization of production in the oil and gas industry; build-up of own hydrocarbon extraction; the conclusion of long-term agreements to supply hydrocarbons with, states, leading exporters of oil and gas.

According to Mykola Azarov the scope of this work is such that the available capital budget investments, obviously, are not enough. Therefore, we must focus on creating attractive conditions for engaging in petrochemical branch strategic investors.

All corresponding measures are stipulated in the Energy Strategy of Ukraine till 2030 that the Government approved on July 24 of 2013. Mykola Azarov has stressed that Vice Prime Minister Boyko and Minister of Energy and Coal Industry Stavytskyy have to organize the implementation of the strategy, propose practical solutions to the Government primarily to stimulate investments in the oil and gas industry.