How to change the price of Russian gas for Ukraine


Today the Russian gas price for Naftogaz to $20-30 lower than the cost of gas that Ukraine buys on the German market. Photo: UA.News

The decision of the Stockholm arbitration reduces the price of Russian gas for “Naftogaz of Ukraine” for $20-50 per thousand cubic meters.

“The price for the changed contract will be below the price under the old formula. Now the difference is about $20. However, this amount will fluctuate depending on the season. For example, in the second quarter, the difference reaches $50. Because in the warm season the market price for gas fall. Previously, the formula tied to oil products and did not reflect market trends in Europe”, – said the chief commercial Director of “Naftogaz of Ukraine” Yuriy Vitrenko, says “Interfaks-Ukraine”.

According to him, now the Russian gas price for Naftogaz to $20-30 lower than the cost of gas that Ukraine buys on the German market. By eliminating the transport component.

The decision of the Stockholm arbitration obliges Naftogaz to purchase on a “take or pay” Gazprom in 2018 4-5 billion cubic meters of gas. Deliveries could begin in March.

Expert on energy issues Mikhail Gonchar said that 5 billion is only one-sixth of the total gas that the Ukrainians consume in a year. This will not create the critical effect of Ukraine’s dependence on Gazprom.

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