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Russia-Ukraine gas dispute

Gas price for Ukraine will comply with contract from April 1 — Russia’s Energy Minister

The discount on the gas price that was valid in the first quarter of the year expires, Alexander Novak said

Russia's energy minister Alexander Novak Mikhail Metzel/TASS

Russia's energy minister Alexander Novak

© Mikhail Metzel/TASS

MOSCOW, March 30. /TASS/. The discount on the gas price for Ukraine that was valid in the first quarter of the year expires and from April 1 the price of gas will be in compliance with the current contract, Russia’s Energy Minister Alexander Novak said.

"On March 31, 2016, the discount on the gas price for Ukraine, which was granted by the Russian government in the amount of $17.77 for the first quarter, expires. The final price of gas for Ukraine in the 1st quarter was $212 per 1,000 cubic meters. The discount was agreed within the framework of the so-called "winter package" by Russia, Ukraine and the European Union. From April 1 of this year, the price of gas for Ukraine will fully comply with the current contract between Gazprom and Naftogaz of Ukraine," the minister said.

RUSSIA-UKRAINE GAS DISPUTE

In May 2014, Russia, the EU and Ukraine began to hold regular trilateral consultations on gas supplies to Ukraine and gas transit to Europe after Russia had canceled the discount on gas for Ukraine.

In summer of 2014, Gazprom began to supply gas to Ukraine on condition of pre-payment.

In the autumn of 2015, Russia managed to fix its right to establishing gas prices on quarterly bases within the "winter package". In its turn, Gazprom promised not use the "take or pay" principle in winter 2015-2016 like in the previous "winter package" that would allow Ukraine to avoid sanctions for insufficient gas intake.

On January 1, the Russian government approved the discount for Ukraine for the supply of natural gas from Russia in the first quarter of 2016. On the basis of the contract price of $230 per 1,000 cubic meters, the discount was to amount to $17.77.

In 2015, Ukraine halved the purchase of Russian gas - up to 7.827 billion cubic meters.

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Alexander Novak Russia-Ukraine Gas Dispute

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