"This is not a discount, this is how the market works," Demchyshyn said / Photo from UNIAN
Ukrainian Minister of Energy and Coal Industry Volodymyr Demchyshyn says that Ukraine will be able to continue buying gas from Russian energy giant OAO Gazprom in 2016 if it lowers its price for Ukraine below $200 per 1,000 cubic meters, according to an UNIAN correspondent.
"The Russians are aware that the price should be lower than $200 to be competitive. And this has nothing to do with a discount, this is how the market works," he said.
"Either the Russians will offer a price below $200, or they will not be able to sell it [gas] to us," he added.
As UNIAN reported earlier, on September 28, Energy Ministers of Ukraine and Russia Volodymyr Demchyshyn and Alexander Novak, as well as Vice-President of the European Commission, Maros Sefcovic, agreed on the conditions of the winter gas package. The winter package of gas accords initialed by the parties foresaw that Ukraine would spend $500 million to buy 2 billion cubic meters (bcm) of gas directly from Gazprom to be pumped into underground storage facilities. Within the framework of the winter package, Moscow provided Kyiv with a gas discount of $20 per 1,000 cubic meters. The price for the period amounted to $227.36 per 1,000 cubic meters.
Ukraine resumed gas purchases from Russia on October 12, and suspended them again on November 25. Over that period, Naftogaz transferred a total of $542 million in advance payments to Gazprom for gas deliveries of 2.383 bcm.