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Russian energy minister admits theoretical possibility of gas discount for Ukraine

March 03, 2015, 12:02 UTC+3
The minister said the Russian gas producer Gazprom has already delivered 100 million cubic meters of gas to Donbas
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© EPA/FILIP SINGER

March 3. /TASS/. Russian Energy Minister alexander Novak has admitted the theoretical possibility of a gas discount to Ukraine for summer gas supplies.

"The contract [between Gazprom and Naftogaz - TASS] stipulates a possibility to provide a discount. In 2013 and 2014 the discount was provided. Theoretically there is such a possibility. If we receive respective requests from the Ukrainian side the Russian government can consider this possibility. Given that this is not a price discount but a decision on export duty. The discount that we have now in the "winter package" is a discount within the limits of the export duty. We will be considering the possibility of providing this kind of discount," he said.

The minister said that the discount will depend on the current situation on the market, on competitiveness of the Russian gas and other factors. "This is subject to separate agreements," Novak added.

He also said that during the trilateral meeting in Brussels on March 2, the sides did not discuss the issue of price for "summer package" gas supplies to Ukraine.

Infographics Gas agreement signed by Russia, Ukraine and the EU Gas agreement signed by Russia, Ukraine and the EU
Gas agreement signed by Russia, Ukraine and the EU On October 31 Russia, Ukraine and the EU signed an agreement on gas supplies. Infographics by TASS

The Energy Minister noted that Russia’s position implies that gas supplies to Ukraine and Donetsk and Luhansk People’s Republics (DPR and LPR) should be within the limits of a single contract.

"This [gas deliveries to LPR and DPR - TASS] is a separate issue, which requires consideration and a speedy resolution. In our view, we should deliver gas to Ukraine, and all this should be within the limits of a single contract," he said.

Novak added that the Russian gas producer Gazprom has already delivered 100 million cubic meters of gas to Donbas. The price for this volume is calculated relying on gas price of $329 per 1,000 cubic meters. Last week LPR and DPR consumed 10-12 million cubic meters of Russian gas per day, the minister said, adding that it’s inaccurate to compare this volume with the volume of Russian gas supplies to Ukraine as Naftogaz also has other gas sources [reverse flows from Europe and own production - TASS].

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