REUTERS
On January 1, 2021, a new price of natural gas was introduced in Ukraine.
Ukrainian Prime Minister Denys Shmyhal has said the Cabinet of Ministers does not intend to buy gas directly from the Russian Federation.
"Our government has no intention to buy gas directly from Russia," he said at the Verkhovna Rada, Ukraine's parliament.
Gas stocks
Natural gas stocks in Ukraine's underground storage facilities (USFs) shrank by 3.6%, to 21.7 billion cubic meters (bcm) within a week, January 16-23.
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Natural gas price: Recent developments
On January 1, 2021, a new price of natural gas was introduced in Ukraine; it was offered by gas suppliers as part of a competitive gas market launch.
Gas suppliers' prices for households in Ukraine in January were set between UAH 6.99 (US$0.25) and UAH 10.8 (almost US$0.40) per cubic meter, while the minimum rate was 11% up and the maximum one was 20.5% up on the December quotation.
On January 1, 2021, new tariffs for natural gas transmission were also introduced.
The National Energy and Utilities Regulatory Commission of Ukraine increased tariffs for 43 gas distribution companies' services by an average of 1.6 times as of January 2021.
Since early January 2021, rallies against the increase in utility rates have taken place in a number of regions.
Responding to protests, President Volodymyr Zelensky instructed the government to urgently resolve the issue of gas tariffs for the population.
On January 13, 2021, the Cabinet said it would propose setting a fixed price of natural gas for households at UAH 6.99 per cubic meter.
On January 18, 2021, the government fixed a price of natural gas at UAH 6.99 per cubic meter for households in Ukraine as of February until the end of the heating season.
In addition, Ukrainian Prime Minister Denys Shmyhal said that the NEURC should shortly make a decision on setting the ceiling gas distribution tariff at UAH 1.79 per cubic meter.
On January 19, 2021, the Cabinet published a resolution to introduce the cap price of natural gas for household consumers at UAH 6.99 per cubic meter.