Gasprom Not Ready To Cut Gas Price For Ukraine Without Merger With Naftogaz

Gazprom still thinks that the question about correcting gas prices for Ukraine can be considered seriously only on condition of Gazprom and Naftogaz of Ukraine merger, the Gazprom press center reports.

The head of the Managing Committee of Gazprom Alexey Miller had a working meeting with the Minister of Energy of Ukraine Yuriy Boiko on Tuesday in Moscow.

Summing up the outcomes of the meeting Miller whose words are quoted in the report pointed out: ”I can’t say anything new. The question about correcting gas prices for our Ukrainian friends can be considered seriously only on condition of Gazprom and Naftogaz merger”.

A week ago he expressed the same idea at the annual meeting of Gazprom shareholders.

The idea of creating a joint venture between Naftogaz of Ukraine and Gazprom was first expressed by the prime-minister of the Russian Federation Vladimir Putin in April 2010. Last December the agreement was reached on creating two Russian-Ukrainian joint ventures: the first one dealing with gas production from coal beds in Ukraine and the second – on the development of the Palas structure in the Black Sea shelf. Miller has already pointed out before that the creation of the joint venture is only the first step on the way of the two companies merger.

Ukraine enjoys the 30% discount off the contract price for the Russian gas, but no more than 100 American dollars for one thousand cubic meters. Nevertheless since last spring Kiev has been pursuing to reconsider the gas price formula set in the long term contract of Gazprom and Naftogaz.

At present the gas price for Ukraine comprises 295.6 American dollars. As Ukrainian Ministry of Energy reported, the target price for the third quarter of this year adjusted for the discount is 350 American dollars, for the fourth one – 400 American dollars and more.

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