Kiev expects lower prices for Russian gas in the first quarter of 2016

Kiev expects lower prices for Russian gas in the first quarter of 2016


The head of Ministry of Ukraine Volodymyr demchyshyn said that the pricing environment for energy resources goes down, so the price on the Russian and European gas needs will decrease.

KYIV, 20 Oct. Kiev hopes that the price of European and Russian gas in the first quarter of 2016 will be reduced, said the head of Ministry of Ukraine Volodymyr demchyshyn.

“We understand that the price in the next quarter will be lower or should be lower on Russian and European gas. In General, the pricing environment goes down in energy resources,” Demchyshyn told journalists on Tuesday.

Gazprom, on 12 October, resumed gas supplies to Ukraine after receipt from Naftogaz 234 million advance payment promised by Kiev, according to the so-called “winter package” of 500 million. Tuesday Demchyshyn reported that “Naftogaz of Ukraine” has transferred another tranche of the advance payment for Russian gas deliveries in the amount of 136 million dollars.

In winter gas package, which Ukraine, Russia and the European Commission initialled on 25 September, agreed the purchase of “Naftogaz” from “Gazprom” gas credit on 500 million dollars attracted using the EC. The government of the Russian Federation provided Ukraine a discount for the fourth quarter of approximately $ 20 per thousand cubic meters. Itself the contract price is 248-252 dollars per thousand cubic meters, said energy Minister Alexander Novak.