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Russia-Ukraine gas dispute

Kiev insists on extension of Russian gas discount till end of heating season

Speaking about the price, the minister Vladimir Demchishin was hopeful it would be lower than the current one

KIEV, June 13. /TASS/. Ukraine insists that Russia should extend the gas discount till the end of the next heating season, Energy and Coal Industry Minister Vladimir Demchishin said on Saturday commenting negotiations with Russia.

"The talks are going ahead and I think in the coming two weeks an agreement will be reached on the price of gas we are going to receive from Gazprom in the third and fourth quarters," Demchishin told Ukraine’s Channel 5. "We insist the discount should be extended till the end of heating season. It remains one of the problematic issues."

Speaking about the price, the minister was hopeful it would be lower than the current one.

"Now the price Naftogaz pays to Gazprom stands at $247," he said. "I am sure it will be lower for the third quarter, but how much it will be depends on the talks."

Till the end of June, gas price for Ukraine stands at $247.18 per 1,000 cubic meters which implies a $100 export duty discount granted by the Russian government. The discount equals to 30% at gas price below $330 per 1,000 cubic meters.

Earlier, Gazprom Deputy Chairman Alexander Medvedev said undiscounted gas price for Ukraine would total $287 per 1,000 cubic meters in the third quarter of 2015. In the fourth quarter the undiscounted price will stand at $262.5 per 1,000 cubic meters, he added.

Thus, the Russian gas might cost $201 per 1,000 cubic meters for Ukraine in the third quarter and around $184 per 1,000 cubic metres in the fourth quarter.

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Russia-Ukraine Gas Dispute

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