Information for fruit and vegetables business in CIS
Lower prices of Russian gas in Ukraine: what Ukrainian greenhouse sector should expect?
Almost all large greenhouse farms of Ukraine believe that a decrease in prices of Russian gas will have no effect on the Ukrainian greenhouse sector. According to Fruit-Inform data, for the present, greenhouse centers purchase gas at $570 per TCM, which accounts for no less than 35% in winter greenhouses' production costs.
In the end of the previous season, the Ukrainian greenhouse sector experts have already warned about a serious threat of many large enterprises' bankruptcy in case of a further increase in gas prices. Therefore, a decrease in prices of Russian gas to $268.5 per TCM for Ukraine must have been good news for Ukrainian greenhouse farms.
Nevertheless, the domestic greenhouse sector remained cautiously optimistic. Ukrainian greenhouse centers think that gas prices will decrease for them by $50 per TCM at best, which means practically nothing for them. The Ukrainian greenhouse business representatives believe that Russian gas will be sold to Ukrainian enterprises at previous prices with the difference between purchase and selling prices to be used by the government to compensate the state budget deficit.