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135

Bad Partners: Gazprom And Naftogaz Ukraine

Naftogaz Ukrainy, in turn, is threatening to raise the transport tariff...

Bad Partners: Gazprom And Naftogaz Ukraine

Russia?s natural gas monopoly Gazprom?s deputy board chairman Alexander Ryazanov yesterday set the 2006 starting price for natural gas for Ukraine at a meeting with Naftogaz Ukrainy chairman Alexey Ivchenko.

Gazprom offered Ukraine a starting price of $180 per 1000 cu. m. of gas, twice more than its current price. Russian gas producer explained that gas is expected to cost more than $200 per 1000 cu. m. in Europe next year, and costs $180 per 1000 cu. m. on the border of Slovakia and Romania.

Naftogaz Ukrainy, in turn, is threatening to raise the transport tariff on Gazprom gas from $1.09 to $3.50 per 1000 cu. m. per 100 km. If it raises the tariff only to $2 per 1000 cu. m. per 100 km., Gazprom will pay $3.1 billion for gas transport. Ukraine will pay Russia about $1 billion more next year than this, if the starting price for gas is finalized. The final price is to be set on September 10.

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