Price of “independence”: Kiev overpays $95 million for gas for 3 months

In the third quarter of 2016, Naftogaz of Ukraine overpaid $95 million for gas, after it stopped buying Russian gas in July-September.

The Ukrainian company reported that in Q3 2016, Naftogaz of Ukraine paid the reverse gas at the average price of $187 per 1,000 cubic meters. Inclusive of the delivery costs from the EU, the gas cost Ukraine $194 per 1,000 cubic meters.

To recall, Gazprom offered Kiev gas for $167.5 per 1,000 cubic meters. It would be by $26.5 cheaper than the reverse gas.

According to EADaily’s data, in the period from July up to September, Naftogaz of Ukraine bought 3.6bln cubic meters of gas overpaying $95.4mln. By the current exchange rate of Ukraine’s National Bank, it is 2.48bln hryvnias. That amount would be enough to pay 1.45mln average pensions.

The key suppliers of gas to Ukraine is Trailstone (U.S.) and Engie (France) that resell the natural gas recovered in Russia to Kiev.