Naftogaz chief says Gazprom’s gas price to be lower than European suppliers’

"The minimum amount [of gas] that we must purchase under the new contract is 4 billion cubic meters [per year]. The price is four or five times lower than the price of gas we are now getting from Europe," he told a Ukrainian TV channel on January 23.

 According to Kobolyev, gas supplies from Gazprom will account for 50% of all gas imports in 2018, while the country's annual demand stands at about 10 bcm.

He also noted that the purchase of gas from Gazprom is Naftogaz’s obligation under the Stockholm Arbitration award. At the same time, in his opinion, it is beneficial for Ukraine.

 "The decision to buy [gas] is both logical and mandatory," Kobolyev said.

 "Our appeal had been heard by the Tribunal, which lowered the price below the European one. So, from the commercial logic perspective, failing to fulfill this award would be like shooting oneself in the foot," he said, adding that Ukraine will have to buy gas from Gazprom in 2018 and 2019.

As UNIAN reported earlier, Ukraine in late November 2015, decided not to buy natural gas from Russia's Gazprom. In 2017, the country increased gas imports by 26.8%, to 14.1 billion cubic meters. Ukraine has been importing gas for own needs from the European countries exclusively.

On December 22, Naftogaz received the final warrant of the Arbitration Institute of the Stockholm Chamber of Commerce related to the gas purchase contract. Thus, the court satisfied a number of demands of the Ukrainian side, that is reduced the gas purchase price in the second quarter of 2014 by 27.4%, to $352 per 1,000 cubic meters, rejected Russia's Gazprom take-or-pay claims amounting to $56 billion, and reduced the mandatory annual gas purchases in 2018-2019 from 52 billion to 5 billion cubic meters.

In this regard, Ukrainian President Petro Poroshenko says that Ukraine is ready to start buying natural gas from Russia again if its price is low, fair, and not corrupt.