Cost of Transit of Russian Gas through Ukraine up nearly 50 Percent in 2016

Russia currently pays $4.50 per thousand cubic meters of gas to be transported over a distance of 100 km through the Ukrainian gas transit network, said the Minister of Energy and Coal Industry of Ukraine Volodymyr Demchishin, at a recent press conference.

According to Demchishin, the tariff for the transit of Russian gas has increased by approximately 50% in 2016, as reported by a Gordon correspondent.

He explained that the increase in the tariff is associated with a new pricing structure for the transit of gas through Ukraine, which was introduced by the National Commission for Regulation of Energy and Utilities (NKREKU).

The Minister stressed that the concept of a ‘transit tariff’ existed before, but now it's called the ‘tariff for gas transportation.’ According Demchishin, the new price is $4.50 per 1,000 cubic meters transported over a distance of 100 km. "It's around 50% more than before," he stressed.

At the same time, the minister reiterated that until recently the price was regulated by the bilateral agreements between Naftogaz Ukrainy and Gazprom.

Before the New Year, on the evening of December 30 2015, the Director of Business Development of Naftogaz, Yuri Vitrenko, said that Ukraine has “dramatically" increased the price for the transit of Russian gas through its territory.



  Volodymyr Demchishin, Russian gas, transit tariff, Yuri Vitrenko