Moscow Defines $17.8-Gas Discount for Ukraine in 1Q16 – Gov’t Decree

© AFP 2023 / ALEXANDER ZOBINAn employee tightens the valve on a pipeline at the Bilche-Volytsko-Uherske underground gas storage facility, the largest in Europe, not far from the village of Bilche village, in the Lviv region of western Ukraine, on May 21, 2014
An employee tightens the valve on a pipeline at the Bilche-Volytsko-Uherske underground gas storage facility, the largest in Europe, not far from the village of Bilche village, in the Lviv region of western Ukraine, on May 21, 2014 - Sputnik International
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Russia has approved the import customs duty rate on the gas supplied from Russia to Ukraine in the first quarter of 2016.

A picture shows a compressor station of Ukraine's Naftogaz national oil and gas company near the northeastern Ukrainian city of Kharkiv on August 5, 2014. - Sputnik International
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MOSCOW (Sputnik) The Russian government has approved the import customs duty rate on the gas supplied from Russia to Ukraine in the first quarter of 2016, which would amount to $17.8 in discount for the contract price of $230 per 1,000 cubic meters, the decree issued Friday said.

The decree was signed into law by Russian Prime Minister Dmitry Medvedev on December 30, 2015.

Taking into account the discount, Kiev will buy Russian gas in the January-March period for $212.2 per 1,000 cubic meters.

The price for the gas is determined by the formula specified in the contract between Russian energy giant Gazprom and Ukraine’s Naftogaz.

On December 28, 2015, Russian Energy Minister Alexander Novak said the contract price for Russian gas deliveries to Ukraine in the first quarter of 2016 might be set at around $230 per 1,000 cubic meters.

Ukraine halted all natural gas purchases from Gazprom in July 2015 after Kiev and Moscow failed to reach a deal on gas deliveries for the third quarter of the year.

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