Gazprom Raises Gas Price for Ukraine to USD 179.5 per ths cm in 2008

Russia’s Gazprom (GAZP RM: U/R) announced yesterday that it would raise gas prices for Ukraine to USD 179.5 per ths cm starting in 2008. Ukraine also plans to increase the amount it charges to transport Russian gas by 6.3% to $1.70 per ths cm per 100 km. Gazprom’s 38% yoy increase in prices at the border will mean that Ukrainian industrial consumers will be paying from USD 210-220 per ths cm for gas. In an interview last night Yulia Tymoshenko called the new gas price a failure by the old government and promised to eradicate RosUkrenergo from the scheme by which Ukraine receives gas if she is made PM. Vladimir Nesterenko: As we expected following the increase in prices by Turkmenistan for gas last week, the gas price for Ukraine jumped to the middle of our range of USD 170-190 per ths cm. Interestingly it is nearly the exact price that Stirol’s (STIR: BUY) management said it was expecting in our meeting with them last week.