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Gazprom Comments on Price Difference for Gas Shipped to Ukraine
RosUkrEnergo will set off high prices for Russia's gas by lower costs of gas shipped from Central Asia, RIA Novosti quoted Gazprom briefer Sergey Kupriyanov as saying. Kupriyanov commented on the five-year contract recently entered into by Gazprom and Naftogaz Ukrainy.
According to Kupriyanov, RosUkrEnergo will first buy Russia's gas at $230/ths cubic meters. In another move, it will mix that gas with the gas pumped from Central Asia, which will enable it to maintain the cost at $95/ths cubic meters on Russia's-Ukrainian border.
RosUkrEnergo is a joint venture of Gazprombank and Austrian Raiffeisenbank with Gazprom's stake exceeding the 50 percent. Naftogaz Ukrainy is among the holders.
For RosUkrEnergo, the price of Russia's gas is determined "under the formula similar to the one applied for European consumers," Kupriyanov said. The gas price "will be adjusted automatically, more often than once a year." As to the transit cost, the price is fixed for five years, Kupriyanov specified.
The five-year contract for supplying gas to Ukraine was sealed in Moscow, on the night of January 4, 2006. The transit rate is $1.6/ths cubic meters per each 100 kilometers, said Gazprom CEO Alexey Miller. The settlement for gas transit will be made by money exclusively and it is not tied to the price for gas shipped to Ukraine, Miller specified.
Miller's statement was echoed by Alexey Ivchenko, CEO at Naftogaz Ukrainy. "There is no bond between the gas price and the transit rate, so we will pay for gas with money and Gazprom will settle up with money for transit of Russia's gas to Europe," Ivchenko confirmed.
www.kommersant.com
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