Ukraine to import gas at record high prices in May

The average cost of imported natural gas in May will remain at a record level reached in April - more than US$300 per 1,000 cubic meters, which can be explained by the growth in oil prices on global markets and high demand for gas in Europe.

"In May, on average, Ukraine will import gas at a price higher than $300 per 1,000 cubic meters. This is explained by the fact that today in the EU there is a very large demand for gas. They need to fill up their underground storage facilities that were emptied during the heating season," Hennady Kobal, Exploration and Production energy consultancy told an UNIAN correspondent.

The expert added that as of today, there are some problems with the operation of gas pipelines in the EU - their interconnectors. Reduced capacity of some of them pushes prices up.

"Another important factor is, of course, the price of oil. Its growth against the background of the latest White House moves drives prices for another important energy resource, natural gas. Prices on commodity markets are strongly interrelated," Kobal said.

Read alsoBloomberg: Nord Stream 2 gas pipe partners rapped by Polish regulatorAs UNIAN reported earlier, on May 8, U.S. President Donald Trump announced his country's withdrawal from the agreement of 2015, where Iran refused from further developing nuclear weapons, while the United States and several other countries lifted sanctions. Trump also announced the resumption of sanctions against Iran and called this country a sponsor of terrorism.

News of the U.S. move sparked a hike in oil prices, since Iran is one of the largest oil exporters in the world (part of OPEC). According to Bloomberg, the price of Brent crude from May 8 to May 10 increased from $74.85 to $77.67 per barrel.

According to the Ministry of Economic Development of Ukraine, the average price for imported gas in April was $309.9 per 1,000 cubic meters (a record value since May 2015), while in March, it was $275.

UNIAN memo. In 2017, Ukraine imported 13.9 billion cubic meters of gas worth a total of $3.228 billion. Over the four months of 2018, 2.2 billion cubic meters of gas was imported.