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Naftohaz confirms offer to Gazprom to discuss gas supplies

The supplies of gas from the EU were cut down ahead of expected price drop.

Naftohaz confirms offer to Gazprom to discuss gas supplies
Photo: Photo: Max Levin

To resume the suspended supplies of gas from Russia, Naftogaz and Gazprom will have to sign an addendum to the contract for the period of the next three quarters, provided the proposed price is lower than that from European suppliers, Naftogaz said in a statement on 7 June.

"The position of Naftogaz has not changed over the past year and a half: the purchase of gas from Gazprom is possible if the Russian company offers a price than that is more attractive than that of European suppliers. Naftogaz believes that an economically justified price of gas from Gazprom should be calculated based on the 'hub minus transport' formula," the Ukrainian company said.

Naftogaz said it was looking for more attractive price offers on the European gas market in the third quarter of the year, so the supplies of gas from EU were cut down for the time being.

Gazprom's gas supplies to Ukraine were suspended on 25 November, 2015, as Naftogaz considered its price inflated.

In the second quarter of 2016, the Russian gas is traded below 180 dollars per thousand cu m, but Ukraine insists that the price should be reduced down to 160-170 dollars.

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