Gas forward contracts for the first quarter of 2016 were concluded at the Central European Gas Hub at less than $170 per 1,000 cubic meters / Photo from UNIAN
Russian Prime Minister Dmitry Medvedev has endorsed a government resolution with a formula for calculating a discount on export duty on Russian gas to be sold to Ukraine, under which the discounted price will be $212.23 per 1,000 cubic meters until March 31, 2016.
This is stipulated in resolution No. 1494 dated December 30, 2015; its Russian version is available here.
With the contractual price for the first quarter of 2016 being $230 per 1,000 cubic meters, the discount amounts to $17.77 with the discounted price being $212.23 per 1,000 cubic meters.
Earlier, Ukrainian Minister of Energy and Coal Industry Volodymyr Demchyshyn announced that Ukraine would be able to continue buying gas from Russian energy giant OAO Gazprom in 2016 if it lowered its price for Ukraine below $200 per 1,000 cubic meters.
"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.
Gas forward contracts for the first quarter of 2016 were concluded at the Central European Gas Hub at less than $170 per 1,000 cubic meters late in 2015.