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Russia-Ukraine gas dispute

Ukraine's energy major unsatisfied with gas price offered by Russia

According to a Naftogaz official, Kiev won't agree to buy natural gas from Gazprom at a price of $177 per 1,000 cubic meters in the third quarter of 2016 and will only import it from Europe

© EPA/ROMAN PILIPEY

KIEV, June 10. /TASS/. Ukraine will not agree to buy natural gas from Gazprom at a price of $177 per 1,000 cubic meters and will only import it from Europe, Business Development Director of Naftogaz of Ukraine Yuri Vitrenko tweeted on Friday.

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Naftogaz is not satisfied with the price Russia has offered for its natural gas, Vitrenko said. "Russian Energy Minister [Alexander Novak] says Gazprom will sell us gas in the third quarter at $177 [per 1,000 cubic meters]. It means the price will actually be $182-183 when adjusted by the calorific value. He believes this is below the market price, however we don’t think so," he added.

"The July price on the German market [NCG hub], for example, was under $173 [per 1,000 cubic meters]" on Thursday, Vitrenko said. "Therefore we will not buy gas from Gazprom at all in such conditions. We will buy all the required gas on the European market," he said.

Gazprom received Naftogaz’s letter with a request to resume gas supplies this week. The natural gas price for Ukraine in the second quarter of 2016 amounting to $177 [per 1,000 cubic meters] corresponds to the market situation and is comfortable without discounts, Russia’s Energy Minister Alexander Novak said earlier. The Russian Minister did not quote the price for the third quarter but said it would be calculated using the contract formula effective until 2019 year-end.

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