Naftogaz asked Gazprom to negotiate because of the new pricing

Moscow. December 31. The national tariff regulator, the Commission on state regulation in the energy field (CREATED) on 29 December, established the tariffs for the transportation of natural gas through cross border pipelines to points of entry and exit, therefore, “Naftogaz” suggested “Gazprom” to negotiate with the new conditions.

If the cost of transit of gas was not regulated by the state and determined only by a bilateral contract between two economic entities – “Naftogaz of Ukraine” and PJSC “Gazprom”, from now on, the applicable rates are determined CREATED. Such authority CREATED in accordance with the adopted in the spring of 2015 the Law “On natural gas market”, which was introduced in Ukraine the norms of the energy legislation of the European Union.

These standards require fundamentally different approaches to setting tariffs for transportation. Instead of negotiating procedures and determine the cost of transit depending on the volume and distance that gas is transported, the new rates must reflect agreed by the regulator the cost of the operator GTS, be applied to booked capacity (“ship or pay”), to be determined for all points of entry and exit of the national gas transport system, that is, with the use of similar approaches for gas transit and internal transport.

“Naftogaz is currently reviewing new rules for the pricing of gas transportation, installed CREATED. The decision of the Commission is binding after its official publication. At the same time “Naftogaz” as a responsible partner suggested “Gazprom” to negotiate on this issue”, – stated in the press release of “Naftogaz”.

“We remain a reliable partner and reaffirm that the transportation of gas for European consumers will be frustrated in amounts due to contract. The transition to generally accepted practice in Europe pricing for transit will contribute to the further integration of our gas transport infrastructure in the European power grid and enhance the reliability of gas supplies to the EU”, – are given in the message words of the head of the Ukrainian company Andrey Kobolyev.