Gas Prices Could Quadruple in Ukraine

Gas Prices Could Quadruple in Ukraine
Gas Prices Could Quadruple in Ukraine

Gas prices in Ukraine may quadruple if Naftogaz of Ukraine sets a unified price for all gas consumers, a company senior official said on Wednesday.

Alexander Todiichuk, Naftogaz of Ukraine Deputy CEO, said this initiative had been supported by the Ukrainian Energy and Coal Industry Ministry, Itar-Tass reported.

“This is a very heavy blow, and politicians are trying to avoid it in view of the elections this autumn as people’s discontent may affect this process,” he said.

On Tuesday, Energy and Coal Industry Minister Yuri Prodan said the country was ready to agree “an interim market price” for gas imported from Russia.

“We are trying to find a solution. The question is what one can expect from the upcoming gas talks between Russia, Ukraine and the EU in Berlin on September 26. We support the compromises offered by the European Union and we are consulting the EU in order to work out a compromise,” he said.

Ukraine will support compromise suggestions to be made by the EU, Prodan said.

 Opposes Sanctions

EU Energy Commissioner Gunther Oettinger confirmed that the main goal is to find an interim solution for the winter period and until April.

Earlier the same day, Oettinger said he opposes imposition of sanctions against Russian gas sector, as stable daily gas supplies should not be a political instrument.

Gas trilateral talks were suspended in June after Russia and Ukraine failed to agree on repayment of a $5.3 billion debt and gas prices. On June 16, Russia’s Gazprom switched Ukraine off gas supplies.

Meanwhile, Ukraine pumped 188 million cubic meters of gas into underground storage facilities from September 14 through September 21, raising the volume of stored gas to 16.444 billion cubic meters.

Ukraine’s underground storage facilities are 51.47% loaded as of September 21.

Ukraine pumps gas, which it receives in a reverse mode from Europe and produces locally. The country has 12 underground gas storages with a total capacity of around 31 billion cubic meters.