“Naftogaz” refused to buy gas at Novak announced price

“Naftogaz of Ukraine” will not agree to the purchase of gas from Gazprom in the third quarter of 2016 at a price of $177 per 1 thousand cubic meters, which is the head of the energy Ministry of Russia Alexander Novak has previously called “comfortable” and appropriate market conditions, wrote to the Director of development of the Ukrainian business company Yuriy Vitrenko on his page in Facebook.

Vitrenko noted that, as of Thursday, the price of European gas for July were “below $173”. “That is why we are in such conditions, the gas from “Gazprom” to buy all will not. All the necessary buy gas on the European market. The benefit with this we have problems now, no, no,” — said a top Manager.

He also said that the fact that the price of gas, “Gazprom” remains at the level even higher than the German hubs”, will be for Kiev “a sufficient argument” in the Stockholm arbitration court, where Naftogaz filed a lawsuit with the requirement to revise the price.

Earlier in June, “Naftogaz of Ukraine” sent “Gazprom” the letter with a proposal to resume gas supplies to Ukraine in the second half of 2016 and first quarter 2017. The letter stressed that the position of “Naftogaz” remains unchanged: the purchase of gas from “Gazprom” is possible if the Russian holding company will offer a lower price than European suppliers. Economically justified, the Ukrainian side considers the price level at the “minus hub transport”.

In turn, the head of the energy Ministry of Russia Alexander Novak on June 8 stated that established for Ukraine in the second quarter price of $177 per 1 thousand cubic meters (without discount) is a much more comfortable “than the prices that there are on the spot market on European gas hubs”.

“I believe that the price in the second quarter absolutely comfortable. No discounts. It corresponds to a perfect market situation, market trends”, — said Novak.