Naftogaz Ukrainy says not to resume Russian gas purchases Friday

KIEV, Apr 1 (PRIME) -- Ukrainian energy holding Naftogaz Ukrainy does not plan to resume gas purchases from Russian gas giant Gazprom from Friday due to an unfavorable price, but remains open to talks over the price, the company said in a statement late Thursday.

“Naftogaz Ukrainy does not plan to resume gas purchases from Gazprom from April 1, 2016, because the price offered by the company is higher than the price offered by Naftogaz’s European suppliers,” the company said. Moreover, Gazprom declined to prolong the so-called winter package, the company said.

Naftogaz Ukrainy “remains open to talks to bring terms of Russian gas purchases to market ones,” the company said.

The company also pledged that transportation of Russian gas to European consumers will be held without disruptions in accordance with the current legislation and terms of the contract between the sides.

Russia provided gas price discounts to Ukraine each quarter of 2015 at the country’s request. Despite a discount provided for January–March, Ukraine stopped purchasing Russian gas in late 2015. Taking into account the discount of U.S. $17.77 per 1,000 cubic meters, the gas price for Ukraine stood at $212 in January–March.

Russia’s Energy Minister Alexander Novak said on Wednesday that Russia’s discount on gas supplies to Ukraine expires on Thursday and the price will fully correspond to the current contract between Gazprom and Naftogaz Ukrainy starting from Friday.

Ukrainian online news agency Apostrophe reported Thursday citing sources on the gas market that the contracted price for Russian natural gas for Naftogaz Ukrainy will amount to $184 per 1,000 cubic meters.

End