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Ukraine’s Naftogaz suggests holding negotiations on new transit tariffs with Gazprom

December 31, 2015, 14:41 UTC+3 KIEV
The Ukraine’s Commission announced a new system of gas transportation tariffs based on "entry-exit" principle will be effective from January 1, 2016
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© TASS/Stanislav Krasilnikov

KIEV, December 31. /TASS/. Naftogaz of Ukraine suggested holding negotiations with Russian gas holding Gazprom in view of new pricing rules for gas transportation services approved by Ukraine, the press service of the Ukrainian oil and gas company said on Thursday.

A change in the tariff policy is taking place because the Ukraine’s National Commission for State Regulation in Energy and Utility Services (NKERKP) set forth tariffs for services of natural gas transportation over cross-border pipelines for entry and exit points. "If the cost of natural gas transit transportation over the territory of Ukraine was not earlier regulated by the government and was determined by the bilateral contract between business companies - Naftogaz of Ukraine and Gazprom - now the relevant tariffs are fixed by NKERKP," the Ukrainian company said.

"Naftogaz as a responsible partner suggested holding negotiations in this regard to Gazprom," the company said.

The Ukraine’s Commission announced a new system of gas transportation tariffs based on "entry-exit" principle will be effective from January 1, 2016. "The capacity fee in entry and exit points" on the border of Ukraine will be set forth according to the system. Tariffs are set as $12.47 per 1,000 cubic meters for all entry points. The fee in exit points varies from $16.74 to $32.80 per 1,000 cubic meters.

Business Development Director of Naftogaz of Ukraine Yuri Vitrenko informed about the transit rate increase on December 30. "Ukraine has dramatically increased the transit rate for Gazprom at last," Vitrenko said in Facebook without details on the gas transit price and the effective date of such changes.

The rate is currently $2.7 per transportation of 1,000 cubic meters of natural gas to 100 km. Russia and Ukraine has an effective transit agreement expiring in 2019.

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