The amount of Russian gas transit through the territory of Ukraine in the year 2008 will reach 113.7 bcm

As a result of negotiations between NJSC Naftogaz of Ukraine, OJSC Gazprom and Rosukrenergo AG regarding the conditions of natural gas supply and transit through the territory of Ukraine in 2008, the Ukrainian party managed to confirm by agreement the increase of natural gas transit in the western direction. The overall amount of gas to be transported through the territory of Ukraine next year is 113.7 bcm, which by 3.7 bcm exceeds the amount planned for the year 2007.

The increase of natural gas transit volume will have a positive effect on the financial state of Ukrainian oil and gas complex. Additional cash receipts obtained by NJSC Naftogaz of Ukraine will allow for partial compensation for the price increase of imported natural gas, which will reach $179.5 for ths. cm. The price increase will also be compensated for by the increased rate for natural gas transit through the territory of Ukraine. It was increased to $1.7 for ths. cm for 100 km, which will bring the Company additional profit of about $400 mln. per annum.

Note: In the year 2008 natural gas supply to Ukraine will be carried out in accordance with the long-term agreement between Ukrgazenergo and the company Rosukrenergo AG.

Imported natural gas price increase was triggered by the increase in the price for Middle Asian natural gas, supplied for Ukrainian consumers from Turkmenistan, Kazakhstan and Uzbekistan. Nevertheless, the price of gas for Ukraine remains one of the lowest of all offered to the countries of CIS.

Natural gas transit through the territory of Ukraine is carried out in accordance with the terms of the long-terms Agreement between NJSC Naftogaz of Ukraine and OJSC Gazprom, valid until the year 2013.
 

Press-centre NJSC Naftogaz of Ukraine

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