18:09 30.06.2016

Gazprom to begin supplying Q3 gas to Kyiv at $167.57 per 1,000 cu m upon prepayment

2 min read
Gazprom to begin supplying Q3 gas to Kyiv at $167.57 per 1,000 cu m upon prepayment

Gazprom is ready to begin supplying gas to Ukraine as soon as it receives prepayment.

"The price for Ukraine under the 2009 contract formula is $167.57 per 1,000 cubic meters in the third quarter. A provisional account for Naftogaz Ukrainy has been set up. In order to restart the supplies, Naftogaz needs only make prepayment," Gazprom CEO Alexei Miller said at a press conference.

"Gazprom will make guaranteed supplies to our Ukrainian colleagues of as much gas as is paid for," he said.

The current contract does not require any endorsements in order to resume supplies to Ukraine. Receipt of prepayment is a sufficient condition, he said.

"The price of gas for Ukraine under our contract is lower than on European trading floors and purchase of Russian gas is advantageous for them," he said.

"The volume that our Ukrainian colleagues have applied for in the third quarter is fairly significant: 3 billion cubic meters of gas," Miller said.

"These volumes are absolutely justified. We are closely monitoring Ukraine's gas injections into underground storage. Unfortunately, as of today the injections lag the pace of the previous two years by over 2.2 billion cubic meters of gas. That is a very large amount," he said.

The price of gas for Ukraine in the second quarter was $177 per 1,000 cubic meters.

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