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RIA Novosti

Business

Gazprom subsidiary to sell 5 bln cu m of gas in Ukraine in 2008

20:52 07/10/2008
KIEV, October 7 (RIA Novosti) - Gazprom Sbyt Ukraine, a subsidiary of the Russian energy giant, will deliver about 5 billion cubic meters of natural gas to industrial consumers in Ukraine this year, the company's general director said Tuesday.

"We plan to reach 5 billion cubic meters by the end of the year," Anatoliy Podmyshalskiy said.

He added that the company would supply about 550 million cubic meters of gas in October.

Gazprom holds a 100% interest in Gazprom Sbyt Ukraine, established under a Ukrainian-Russian agreement of March 12, 2008, to operate on the Ukrainian market.

The company holds a five-year license to sell 7.5 billion cubic meters of gas a year to Ukrainian consumers at unregulated tariffs.

The price Ukraine is due to pay for Russian-supplied natural gas in 2009 should be agreed within a month, Ukrainian Prime Minister Yulia Tymoshenko said Friday. A Gazprom source told the UNIAN agency Tuesday that the company expected a deal to be signed by the end of November.

Ukraine primarily receives Turkmen gas pumped across Russia. Producers in former Soviet Central Asia have announced plans to bring prices in line with EU levels, and Gazprom has said prices for Ukraine could rise to $400 from next year. In 2008, Ukraine has paid $179.5 per 1,000 cu m for Russian supplies.

Gas pricing and supply has been a thorny issue in recent years, triggering bitter rows between the two former Soviet republics.

The countries are switching to direct ties in the gas sector, involving Gazprom and Ukraine's national Naftogaz, which also receives the right to re-export gas to Europe jointly with Gazprom.

The current supply scheme involves the Swiss trader RosUkrEnergo, in which Gazprom holds a 50% stake.

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RIA NovostiGazprom subsidiary to sell 5 bln cu m of gas in Ukraine in 2008

20:52 07/10/2008 Gazprom Sbyt Ukraine, a subsidiary of the Russian energy giant, will deliver about 5 billion cubic meters of natural gas to industrial consumers in Ukraine this year, the company's general director said Tuesday. >>

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