Report: Min says Naftogaz Ukrainy overpays $70 mln for gas Jul–Dec

MOSCOW, Dec 12 (PRIME) -- Ukraine’s energy holding Naftogaz Ukrainy has overpaid about U.S. $70 million for natural gas in July–December because it bought the gas in Europe instead of Russia, Russian Energy Minister Alexander Novak said in an interview to local television channel NTV broadcast Monday.

“The price (for Russian gas for Ukraine) today, as defined by the contracted formula, is lower than prices formed today at the spot markets, hubs and exchanges by about $20–30. That is why from the economic point of view the Ukrainian side is interested in buying gas from Gazprom. It is more profitable as the price is lower,” he said.

“Still, there is a moment here on which we are focusing attention of our Ukrainian colleagues and the European Commission: the price for Russian gas under the contracted formula has been lower since the start of the second half of 2016. It is obvious that Naftogaz buys the same gas – our gas – from European consumers at a higher price. We’ve calculated that Naftogaz has overpaid about $70 million in the second half of the year alone.”

Under the previous winter package, Naftogaz Ukrainy bought 2 billion cubic meters of gas from Gazprom for $500 million it borrowed with the help of the European Commission in the period from October 12, 2015 through November 25, 2015. Ukraine continues buying the transit gas from Europe saying that it is cheaper than Gazprom’s gas.

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