Ukraine likely to buy less Russian gas than agreed in 2013 – Gazeta.Ru


— 27.06.2012 15:09 —


Ukraine likely to buy less Russian gas than agreed in 2013
Russia and Ukraine have agreed on the amount of Russian gas supplies for the next year, Ukraines Energy minister Yuriy Boyko said on Wednesday. He said Kyiv will buy

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Ukraine likely to buy less Russian gas than agreed in 2013   Gazeta.Ru

Russia and Ukraine have agreed on the amount of Russian gas supplies for the next year, Ukraines Energy minister Yuriy Boyko said on Wednesday….

Russia and Ukraine have agreed on the amount of Russian gas supplies for the next year, Ukraine’s Energy minister Yuriy Boyko said on Wednesday.

He said Kyiv will buy less than 27 bln cubic meters of gas in 2013.

According to contracts, signed up to 2019, Ukraine should buy 52 bln cubic meters of gas annually, but this year Ukraine hopes to buy only 27 bln cubic meters of Russian gas. Because of the high prices for the Russian gas, Ukraine’s authorities try to lower the gas supplies in the country.

“With the regime of economy and a partial use of coal energy, as well as more active use of nuclear energy, 27 bln cubic meters of gas is pretty enough for Ukraine,” Vladimir Saprykin, an independent energy expert says.
Russia and Ukraine have been arguing on Russia’s gas prices during the last couple of years. The current agreements were signed in 2009 when Yulia Timoshenko was the Prime minister of Ukraine.

There is one point in the agreement which does not satisfy the Ukrainian government. According to the agreement, the gas prices are linked with the prices for the heating oil and gas oils which are oriented at Italy’s market, one of the most expensive markets in Europe.

In 2011 Ukraine’s PM Nikolay Azarov estimated the prices for the Russian gas for 2012 as $416 for 1000 cubic meters. Azarov called such conditions “enslaving” and urged to change the prices.

On Wednesday the gas prices will be discussed during the visit of Russia’s PM Dmitry Medvedev to Kyiv. If Ukraine lowers the purchase of the Russian gas, the state will have to compensate the lost income to Russia’s gas giant “Gazprom.”
“This is a hurting point for Gazprom – the largest gas consumer which buys gas at the highest prices, decreases score of supplies,” Saprykin says. “It will definitely affect Gazprom’s financial figures.”

When Ukraine first spoke of possible decrease of score of supplies in 2011 Gazprom’s head Alexey Miller then said that Ukraine would anyway have to pay for at least 33 bln cubic meters of gas, as these were the terms of the contracts based on the “buy or take” principles.

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