Gazprom Seeks More Penetration into Ukrainian Market.

Yesterday Gazprom and Naftogaz of Ukraine failed to reach an agreement on several issues related to gas supplies to Ukraine. According to the details of a draft agreement disclosed by Kommersant, Gazprom included a condition that the new JV for gas sales within Ukraine sells gas to all Ukrainian consumers. Currently Ukrgaz-Energo only sells gas to industrial consumers. The Russian gas monopoly also demanded long-term contracts with final consumers (until 2028) and a pricing formula that assumes a USD 5 markup to the price of gas at the Ukrainian border.