Gazprom announced the price reduction for Ukraine

The contract price of Russian gas for Ukraine in the second quarter of 2016 is less than $180 for 1 thousand cubic meters, said Friday the Minister of energy of Russia Alexander Novak, reports “Interfax”. This was confirmed by the official representative of “Gazprom” Sergei Kupriyanov.

This is lower than the price of the first quarter, but from April will cease the discount for Ukraine. In January—March operated price $212 per 1 thousand cubic meters with the discount at $17. Russia decided not to extend its action from the second quarter, Novak said yesterday. And Gazprom is not addressed in the government with a request to extend the discount, he added on Friday.

Even with the abolition of discounts such reduced prices is because the price of gas pegged to the cost of petroleum products and is calculated for the last nine months. In this period came in the first quarter of 2016 with a record low oil prices.

Ukraine buys Russian gas from November 2015, preferring purchases in Europe. However, Ukrainian officials criticized the decision by Gazprom not to renew the discounts. Naftogaz does not plan to resume the purchase of gas from Gazprom from April 1, 2016, because the gas price proposed by the company for the second quarter of 2016, above the proposals of the European suppliers of Naftogaz, said Thursday evening the Ukrainian company. “Naftogaz” remains open to negotiations on improvement of conditions of purchases of Russian gas market”, — stated in the message.

However, the price of Russian gas remains competitive in the Ukrainian market, reminds “Kommersant” in March, CEO of Naftogaz Andriy KOBOLEV said the company buys gas in Europe for $180 for 1 thousand in cubic m, getting him for $200 for 1 thousand in cubic m taking into account transportation.

“If “Gazprom” will offer us the market price, there is no political task is not to agree to it,” he said on Friday, “RIA Novosti” Minister of energy of Ukraine Volodymyr Demchyshyn. Market he named a price “significantly below” $180 for 1 thousand in cubic m. According to him, now Kiev can buy gas in Europe for about $170 for 1 thousand cubic meters.