Thursday, 9 June 2011

Gazprom not planning to alter gas price formula for Ukraine

Sochi, June 6 ) - Gazprom does not plan to alter the price formula for gas for Ukraine and will not couple it to other fuels, the Russian gas giant's chief executive, Alexei Miller, told reporters.

"We won't be dreaming up any new formula for anybody or pegging it to any other fuels," Miller said, adding that the price formula as per the contract with Ukraine was "an absolutely market one."

Higher prices for Russian gas are a cause for concern in Ukraine, "where consumption is higher than after the crisis. Consumers are worried about the price that could emerge in Q4 2011," Miller said.

But he said the long-term contract with Ukraine also envisaged market approaches to setting the transit rate for Russia gas across Ukraine and destined for Europe.

This transit will grow in volume in 2011 as Europe consumes more Russian gas.

"We have growth of 22% in gas supplies to Europe since the start of 2011, compared with the same period of last year. This also influences Ukraine's revenues," Miller said.

"We will continue to work with Ukraine based exclusively on the market," he said.

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