• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 5 hours Trump to Make Allies Pay More to Host US Bases
  • 6 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 5 hours US-backed coup in Venezuela not so smooth
  • 24 hours THE DEATH OF FOSSIL FUEL MARKETS
  • 16 hours Solar to Become World's Largest Power Source by 2050
  • 7 hours Biomass, Ethanol No Longer Green
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 21 hours Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation
  • 5 hours Trump Tariffs On China Working
U.S. Supermajors Could Form A New Oil Cartel

U.S. Supermajors Could Form A New Oil Cartel

According to an analyst at…

Pakistan Aims To Become A Natural Gas Hotspot

Pakistan Aims To Become A Natural Gas Hotspot

Positioned perfectly in the Asian…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Ukraine Pays 20% More For EU Gas Than It Would Have Paid To Russia

Gas Pipeline

France’s energy group Engie started direct gas deliveries to Ukraine at the beginning of January, and Kiev is paying 20 percent more for the EU gas than it would have paid to Gazprom if it had agreed to Russian deliveries before the cold winter temperatures settled in.

According to a press release from Ukraine’s gas transit company UkrTransGaz, Engie started delivering gas as per the contract that the parties had signed in October last year.

According to Russian media, the price of gas from EU countries was $230 per 1,000 cubic meters, which is 20 percent more than what Russian gas would have cost Ukraine, if it had agreed to imports: $186 per 1,000 cubic meters.

Ukraine stopped purchases of Russian gas in 2015 over a gas pricing dispute, with relations between the two countries already soured with Russia’s annexation of Crimea.

Last month the European Commission resumed efforts to broker a deal and held a trilateral meeting with Russia and Ukraine ahead of the winter in Europe, where a number of EU countries rely on Russian gas transiting Ukraine. Russia’s Gazprom and Ukraine’s Naftogaz are suing each other over the gas pricing contracts in an international arbitration court in Stockholm, with each claiming around US$30 billion. Ukraine insists that some clauses in the long-term contract are against Ukrainian and EU antitrust laws.

Related: U.S. Nuclear Power Plants Continue To Close

After the meeting at the EC, Aliona Osmolovska, a spokeswoman for Naftogaz, told Bloomberg that Ukraine can’t buy gas from Russia without a supplementary agreement on payment terms, and that Russia won’t sign the supplementary accord.

Just a few days ago, Naftogaz said that it expected foul play from Gazprom regarding the transit of Russian gas via Ukraine to Europe. According to Naftogaz, Gazprom is likely to find itself short of sufficient amounts of gas to satisfy the needs of both its domestic and foreign clients, and therefore accuse Ukraine of using Gazprom gas for its own needs, and then making the Ukraine pay for it.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bianca on January 16 2017 said:
    Fact check is needed before publishing anything Ukrainian authorities say. Gazprom to run out of gas? Seriously?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News