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Gas price for population to be raised up to 5-fold in Ukraine - Naftogaz CEO

December 13, 2014, 0:04 UTC+3 KIEV
People who would be unable to pay the new price in full would be eligible for subsidies, Kobolev said
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KIEV, December 12. /TASS/. Gas tariffs for the population may be increased three to five-fold in Ukraine, Naftogaz CEO Andrei Kobolev told the television Channel 5 on Friday.

“The government is currently considering the issue of raising gas prices,” he said. The rise may be three to five-fold. We have ungrounded low prices for consumers.”

He said the gas prices would be adjusted against weighted average import price. The final decision, in his words, had not yet been taken. Apart from that, people who would be unable to pay the new price in full would be eligible for subsidies.

Price for Russian gas

Andrei Kobolev hopes that it will be able to purchase Russian natural gas at less than $ 340 per 1,000 cubic meters. After the discount that Gazprom granted to Naftogaz upon the end of trilateral talks in Brussels on October 30, the price of gas the Russian corporation set for Ukraine totaled $ 378 per 1,000 cubic meters for the 4th quarter of 2014 and $ 365 for the first quarter of 2015.

“We hope the price will be less than $ 340 already in the first quarter of the year under the contract we signed in the autumn in Brussels,” Kobolev said. “The price for Europe is much lower now and, quite possibly, it will be still lower.”

He noted an overall tendency towards a decrease of prices on the market of energy resources, especially in the summertime when the prices generally go down in the absence of heating.

Infographics Russian gas supplies to Europe: existing routes Russian gas supplies to Europe: existing routes

THE MAIN EXPORT ROUTES OF RUSSIA’S NATURAL GAS SUPPLIES TO EUROPE. Infographics by TASS

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