Cabinet recommends Naftogaz to hold talks with Gazprom on revision of gas transit tariffs
The Ukrainian government has recommended national joint-stock company Naftogaz Ukrainy and public joint-stock company Ukrtransgaz to urgently take measures to bring the contract relations on natural gas transit via the territory of Ukraine in line with the temporary procedure for the formation of tariffs approved by cabinet resolution No. 510 of September 3, 2014.
According to the document posted on the government's Web site, the procedure does not apply only to relations appeared between Naftogaz Ukrainy and Moldovagaz during gas transportation by pipelines on the territory of Ukraine and Moldova for consumers of border areas of the two countries.
"The resolution changes methods for the formation of transit tariffs. These are European methods and it is one of the grounds for signing a new contract on gas transit with Gazprom," Energy and Coal Industry Minister of Ukraine Yuriy Prodan told Interfax-Ukraine.
Earlier Naftogaz Ukrainy said that the interim order of forming tariffs for gas transportation is based on the "input/output" tariff system for gas points located on the border of Ukraine.
According to the contract of Naftogaz Ukrainy and Gazprom on gas transit of 2009 the tariff for the first quarter of 2014 totaled $2.73 per 1,000 cubic meters each 100 kilometers and the distance of transportation is around 1,240 kilometers.