Naftogaz advocates 'hub minus transportation' price at talks with Gazprom

14:35, 07.06.2016 1 min read

The national joint-stock company Naftogaz Ukrainy has sent an offer to the Russian gas company Gazprom to sign a supplement to the contract between the parties, which will reduce the prices to economically justified level for the next three quarters, the Naftogaz's press service reported.

"The position of Naftogaz has been unchanged for the past year and a half: they may buy gas from Gazprom if the Russian company offers a lower price than Naftogaz's European suppliers. Naftogaz says that the economically justified price of gas from Gazprom should be 'the price at the hub minus transportation'," the statement reads.

Naftogaz says that it expects the price on the European gas market to be most attractive in the third quarter, so the company has reduced its current purchases of imported gas.

As reported, Gazprom received a letter from Naftogaz about the possibility of resumption of gas deliveries in the period from July 2016 till March 2017.