Minister: Russian gas discount for Ukraine expires March 31

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The duration of the winter gas cket for Ukraine has expired and as of April 1 Russia will no longer grant a ss on gas it sells to the country, Energy Minister Alexander Novak said in a assertion posted on the ministry’s website.

“The discount on gas for Ukraine in the amount of $17.77 that was granted by the Russian ministry for the first quarter of 2016 expires on March 31, 2016. The final evaluation of gas for Ukraine in the first quarter was $212 per 1,000 cubic meters. The settlements on the discount were established within the context of the so-called winter cket, agreed by Russia, Ukraine and the European Union,” Novak bring up.

“Beginning on April 1 of this year, the price of gas for Ukraine will fully write to the current contract between Gazprom and Naftogaz Ukraine,” Novak intended.

The Russian government approved a discount on Russian gas of $24.60 per 1,000 cubic meters on the draw together price of $252 for the fourth quarter of 2015, which means Ukraine could buy the gas at $227.40.

The knock off was reduced to $17.77 for the first quarter of 2016, which with a commitment price of about $230 resulted in a final price of $212.23. But Ukraine maintains this price is too high.

After trilateral negotiations in September, Naftogaz obtain 2 billion cubic meters of gas from Gazprom in October and almost 400 mcm in November. As of November 25, Naftogaz lock stopped buying Russian gas and switched to buying cheaper gas from Europe.

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