Ukrainian electricity exporter Ukrinterenergo and Russian Inter-RAO UES signed a one-year contract to export 200-800 MW of electricity to Russia starting on Nov. 1, 2006. The contract can be prolonged. The price of supplied electricity during the first four months is set at the Ukrainian wholesale market price (currently about 40 USD/MWh), and afterward it is set according to the tariff of the Energoatom nuclear company (currently about 21 USD/MWh). Alexander Paraschiy: The pricing methodology implies that Russia will buy electricity produced mostly at thermal power plants (which is positive for GenCos) during the winter period (Nov. – Mar.), and then will buy base-load electricity produced at nuclear power plants. At the moment it is not clear whether the final price includes transportation fees. The last contract signed between Ukraine and Inter-RAO in 2004 failed only because contract price did not include a transportation tariff, so Ukrainian consumers paid for the transportation of electricity to Russia.