Ukraine has the second largest gas reserves in Europe but continues to import a third of its needs.

The head of the "Gas" division at NJSC Naftogaz of Ukraine, Andriy Favorov, said this on Radio NV, an Ukrinform correspondent said.

"Ukraine is the No. 2 country in Europe in terms of gas reserves. How can we manage to import a third of our needs with such reserves? State-owned company Ukrgasvydobuvannya received $50 after paying all taxes, but they told them: 'Develop, drill more [gas wells], find new technologies, increase extraction.' What for? It requires huge investments," Favorov said.

According to him, now the situation has gained momentum - the company pays 70% of its profits to the budget in the form of taxes.

"We have less than a hryvnia for development. It costs UAH 10-15 million to drill one well," Favorov added.