Report: Ukraine can triple gas transit price for Gazprom 2016

KIEV/MOSCOW, Jan 19 (PRIME) -- The annual payment of Russian gas giant Gazprom for natural gas transit to the E.U. across Ukraine can rise to U.S. $6 billion in 2016 from $2 billion because Ukraine changed the methodology of transit fee calculation in late 2015, local newspaper Energorynok reported late Monday.

Earlier on Monday, CEO of Ukrainian energy company Naftogaz Ukrainy told Bloomberg that Kiev will discuss new gas transit tariffs with Gazprom in January. Naftogaz Ukrainy will start charging on a pump-or-pay basis, he said.

According to Energorynok, Gazprom used to pay $2.73 for transit of 1,000 cubic meters of gas by 100 kilometers in 2015. In 2016, the payment will rise to $4.07. Kiev will charge value-added tax (VAT) on transit, due to the suspension of a free-trade agreement between Russia and Ukraine and the transit price will grow to $4.9.

The pump-or-pay rule, as calculated on the basis of the 2015 total transit of 64 billion cubic meters, will drive the transit price to $6.56, and with the VAT, the final fee will amount to $7.91, the newspaper reported.

Kobolev will meet with his counterpart in Gazprom Alexei Miller in January 20–30 in order to discuss the issue. Gazprom disagrees with the new tariff, Energorynok reported, citing its sources.

Gazprom earlier said that it will not prolong a gas transit contract with Ukraine in 2019 but Ukrainian authorities believe that the company will have no alternatives, as follows from earlier statements.

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