Gazprom, Naftogaz discuss gas supply terms for Q1 2016

13:18, 23.12.2015 1 min read

The heads of Gazprom and Naftogaz Ukrainy, Alexei Miller and Andriy Kobolev, discussed "the terms for purchase by Naftogaz of Gazprom gas in the first quarter of 2016" at a meeting in Berlin on Wednesday.

They also discussed issues connected with provision of uninterrupted transit of Russian gas through Ukraine to Europe, Gazprom reported.

The Russian side sets a price for Naftogaz by providing a discount to a special customs duty that uses the spot price of gas in Europe as a benchmark. Gazprom Deputy CEO Valery Golubev recently said that the calculated price of gas for Ukraine in the first quarter (without discount) equals $230 per 1,000 cubic meters. Forward contracts on gas at European hubs are currently trading at around $170 per 1,000 cubic meters.

Gazprom earlier requested a letter of guarantee from Naftogaz concerning the volume of gas offtake in the first quarter.