Ukraine-Russia sign 10-year gas contract
20 January 2009
According to Kommersant, Ukraine’s Naftogaz and Gazprom signed a 10-year contract in what leaders in both countries hailed as an end to their annual gas conflict. The contract assumes that starting Jan. 1, 2009 the price of gas for Ukraine will be calculated according to a formula accounting for the European market price and a discount, 20% in 2009 and 10% next year. Ukrainian Prime Minister Yulia Tymoshenko expects that Ukraine will pay an average price of USD 235-250 per ths cm of gas this year. Media reports put the gas price in 1Q09 at USD 360 per ths cm (a 20% discount to the European price). Meanwhile, the gas transportation tariff remained intact for this year (USD 1.7 per ths cm per 100 km), its size for the following years is a matter of further negotiation, according to Tymoshenko. The Ukrainian Prime Minister confirmed today that as of 10:00am Moscow time, Gazprom resumed pumping natural gas through Ukraine, gas is expected to reach Western Europe within 36 hours.
