Ukraine sees Russian gas offer as too high

*Naftogaz supply lines.

*Naftogaz supply lines.

*Plans imports from Europe

10 June 2016 – Ukraine is likely to ignore a recent Russian offer for gas supplies in the third quarter of 2016 in favor of buying elsewhere in Europe, Yury Vitrenko, a deputy head of Ukrainian state energy firm Naftogaz, said on Friday.

Naftogaz said this week that it had expected to agree on a new supply deal with Russia’s Gazprom for the winter period of 2016/17 but that the price would have to be “economically reasonable”.

Vitrenko said on Friday that Russian energy officials had offered a price of $177 per 1,000 cubic meters (tcm), while the price for gas in Europe had decreased to less than $173.

“Under these conditions, we will not buy gas from Gazprom. We will buy all necessary volumes on the European market. We have no any problem with this,” he said on Facebook.

With relations between the nations at an all-time low because of Russia’s annexation of Crimea, Ukraine has not bought gas directly from Russia since November 2015, though Ukrainian Prime Minister Volodymyr Groysman said this month that he would not rule out buying from Gazprom if the price was right.

*Pavel Polityuk; Editing by David Goodman)

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