Naftogaz warns about a possible rise in price of gas transit by $4 billion per year
Gazprom’s price for the transit of Russian gas through Ukraine may grow by 4 billion dollars a year should Ukraine succeed in the Stockholm arbitration, and be granted the amendment to the contract with Gazprom to adhere to European norms, as was posted on Facebook by the Commercial Director of Naftogaz of Ukraine, Yuriy Vitrenko, on November 19th.
Reiterating Ukraine’s position prior to the hearings in Stockholm which were scheduled for November 21st, Vitrenko also indicated that Gazprom will have to pay "tens of billions of dollars in compensation" to Ukraine for the transit of gas, to enable them to sell gas at a much lower price and not hinder Ukraine's integration into the European market.
The tariff for the transit of Russian gas through Ukraine increased by 50% in early 2016. As Kyiv explained, this was due to a new pricing methodology introduced by Ukrainian state regulators in the energy sector.
Previously, the cost of transportation of Russian gas through Ukraine was regulated by bilateral agreements between Gazprom and Naftogaz.