Ukraine now buys gas at record high prices

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Ukraine has begun to buy natural gas at record high prices – according to statistics for April.

According to the published data of the State Fiscal Service of Ukraine, the average price per cubic meter of fuel last month was $310. The previous record was set in May 2015 – then gas cost $300 for Kiev.

“The State Fiscal Service of Ukraine calculated the average cost of imported natural gas, which was registered during  customs clearance when imported to the territory of Ukraine in the period from April 1 to 30, 2018 – it amounted to 8,099.8 hryvnia, or 309.9 dollars per one thousand cubic meters, “the department said.

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A reminder that the Ukrainian company Naftogaz has earlier re-started buying gas from the Russian company Gazprom. The parties agreed on the volume of supplies of 21 million cubic meters.

The deputy chairman of the board of Gazprom, Alexander Medvedev said that contracts with Ukraine to supply gas after 2019 will not be extended. In the past, the Ukraine used to benefit from special rates on natural gas from Russia until it imposed a a ban on Gazprom. Then the decision was retracted in the cold winter months.

A similar situation is unfolding with Ukraine’s coal supplies – where as previously it relied on domestic production in the East of the country, today it purchases more expensive coal from the US.

At the same time, the Ukraine is petitioning the EU not to proceed with the Nord Stream 2 project, which will bypass Ukraine in terms of transportation routes of Russian gas directly to Europe. The EU has stated that this project is essential for the region’s energy security – while Ukraine emphasises that Russia is playing ‘energy politics’ in order to gain political leverage in the EU. The fact remains that Russia has, reportedly, never been late on energy supplies and is not seen as an ‘unreliable partner’ when it comes to contracts.

 

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