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HomeEuropeRussia is ready to reduce gas prices for Ukraine

Russia is ready to reduce gas prices for Ukraine

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Russia is ready to reduce the price of gas for Ukraine.
In the fourth quarter of 2015 the price of gas for Ukraine may be lower than in the third, said Minister of energy Alexander Novak. However, the Ukrainian authorities should ask for the discount, he said.

“We completely understand the situation that the Ukrainian side has simply no cash to pay in advance for the purchase of gas. In the fourth quarter, the Russian side will be ready to sell gas taking into account the discount on prices that are competitive and are summarized in neighbouring countries, e.g. in Poland,” said Novak.

The Minister recalled that the cost of delivered gas to Ukraine is calculated by special formula based on the world oil prices, which recently reduced. And, therefore, prices on gas should drop.

“Accordingly, prices in the fourth quarter will be somewhat lower than in the third quarter according to the formula,” explained the Minister. The exact size of future discounts (in the III quarter of 2015 it is $40 for each 1,000 cubic meters) wasn’t announced by Novak. He explained that the Ukrainian authorities first have to address to Russia with a request for the provision of benefits.

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