Ukraine May Raise Transit Price for Gazprom

RIA Novosti reported that according to Ukrainian State Enterprise Energorynok, the tariff rate for transporting Russian gas through the territory of Ukraine may increase in 2016 from $2.73 to $4.07 per 1000 cubic meters per 100 kilometers. Taking into account a new method of calculating the transit cost approved by Kiev in the end of last year, it will cost Gazprom $7.91 per 1000 cubic meters.

According to the publication, the new method of calculating transit price is closely associated with gas volumes for transportation. Nevertheless, Kiev fully expected Gazprom to adhere to the 2009 contract and book the maximum amount of gas to be transported—110 billion cubic meters per year.

It is estimated that based on last year’s real transit volumes, the annual sum paid by Russia for transporting gas may grow from $2 billion to $6 billion. Gazprom strongly rejects the new tariff method.

Yuriy Vitrenko, The Director of Business Development for NJSC Naftogaz Ukraine said earlier that Ukraine had dramatically increased the tariff rate for transporting Russian gas through the country but he did not specify any concrete figures.

  Ukraine, Russia, Gazprom, Natural Gas