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Gas Price Above $180 Will Be Disaster for Ukraine
Hiking gas price for Ukraine to above $180 per a thousand cu meters from today’s $130 per a thousand cu meters will be catastrophic for a number of sectors of national industry, including the chemical branch, Ukraine’s Acting Economic Minister Anatoly Kinakh announced Wednesday.
“If the price exceeds $180, for the better part of the branches, for chemical branch in particular, this price will be catastrophic,” Kinakh said during the briefing.
Russia’s gas monopoly, Gazprom, sealed Tuesday a supplement to the contract with Turkmenistan, whereby the gas prices for the first half and the second half of 2008 will be $130 per a thousand cu meters and $150 per a thousand cu meters respectively. The price will be calculated under the formula and based on the market approach starting from January 1, 2009.
So, the growth in gas prices for Ukraine is widely apprehended. Local bureaucrats spoke of $150 per a thousand cu meters to $160 per a thousand cu meters as the optimal price. But their forecasts were based on assumption that the price for Turkmen gas would stand still at today’s $100 per a thousand cu meters.
www.kommersant.com
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