The actual selling price of natural gas, from which the royalty for its production in Ukraine is calculated, in December 2023 amounted to UAH 13,596/thousand cubic meters, which is 5.5% less than in November (UAH 14,381/thousand cubic meters), according to the website of the Ministry of Economy.

According to law No. 7732 on amendments to the calculation of royalty for the use of subsoil for natural gas production, from August 1, 2022 until the complete lifting of the ban on the export of Ukrainian gas, royalty is calculated based on the maximum of three domestic sales prices.

NJSC Naftogaz Ukrainy, based on the results of the purchase of Ukrainian gas on organized commodity markets, did not enter into gas purchase and sale agreements in November (as of December), and the weighted average price of its subsidiaries in November (as of December) amounted to UAH 13,160/thousand cubic meters.

The average price based on the UA VTP Gas Price (the arithmetic mean between the Bid and Ask prices in the Argus European Natural Gas and ICIS European Spot Gas Market reports) is UAH 13,596/thousand cubic meters.

As reported, before the adoption of law No. 7732, the actual selling price of gas was calculated as the arithmetic average of the customs value of imports and quotations at the Dutch TTF gas hub.

The revision of tax legislation is associated with a significant increase in spot prices in Europe, a ban on the export of Ukrainian gas and a decrease in domestic consumption. This led to production becoming unprofitable for many companies, since the selling price in Ukraine is significantly lower than European prices.