Price of Russian gas for Ukraine in Q3 should be lower than $177 per 1,000 cubic meters
The price of Russian natural gas for Ukraine in the third quarter of 2016 (Q3) should be lower than $177 per 1,000 cubic meters, Naftogaz Director for business development Yuriy Vitrenko has said.
On June 9, the price of gas on the German market (the NCG hub) for July was lower than $173 per 1,000 cubic meters, he wrote on Facebook.
According to him, the market price of Russian gas in Ukraine should be calculated according to the following formula: "the German hub minus transportation costs from the Russia-Ukraine border to the hub."
"Therefore we won't buy gas from Gazprom at all on such terms ($177 in Q3). All the needed volume will be bought on the European market. It's very good we've got no problem with this now," he wrote.
As was reported, Gazprom received a letter from Naftogaz on the renewal of Russian gas shipments in the second half of 2016 and the first quarter of 2017. In its letter, Naftogaz says that it may buy gas from Gazprom if the Russian side offers a lower price than the one proposed by European suppliers. Naftogaz thinks that Gazprom's price set at the level "the hub minus transportation" is a fair price.
