PM Yulia Tymoshenko: As of today, we’ve already managed, using the formulas and considering the discount, to calculate the exact price of natural gas for Ukrainian consumers in 2009. The price, one that will be effective not on a quarterly basis and subject to change, but one that will be uniform for the entire year, starting January 1, 2009 — this gas price, meaning, as you understand, the price at the border, will be $228.8 per 1,000 cubic meters. For comparison shopping, you’ve been provided with a table where you can match the natural gas prices in friendly Poland against the natural gas prices that will be in Ukraine. At the same time, the transit rate will remain throughout the year 2009 at $1.7 per 1,000 cubic meters per 100 kilometers. The rate will remain [unchanged] because an agreement has been reached regarding a special rate for technical gas that is used in transit pumping. Said special rate for the volumes of gas to be transited is $153.9 per 1,000 cubic meters of gas. The $1.7 rate is justified given the discount rate for the technical gas, and it is a rate that makes it possible for the gas pipeline system to operate normally.
Gazprom tells a slightly different story.
It proceeds from a base price of $450/mcm as stipulated in the 10-year contract signed between Ukraine and Russia. (If that’s what EU countries pay — transit via Ukraine, Slovakia and the Czech Republic included — then why should those transit costs be included in the base price for Ukraine?)
Ok, the price will be revised quarterly depending on the 9-month average price of diesel fuel and black oil. In Q1 2009, Ukraine will get 20% off the base price of $450.
By contrast, throughout the year 2009, Ukraine will transit 120 bcm of Russian gas to the EU, at the 2008 transit rate of $1.7/mcm/100 km. (EU countries charge at least twice as much, don't they?)
Starting with 2010, Ukraine and Russia will fully commit to European pricing, the agreement says. (But why does Alexander Medvedev of Gazprom already say that the 2010 transit rate will be $2.4-2.6?)
So how does Ukraine benefit from this formula of bizarre pricing and asymmetric discounts?
Watch Tymoshenko’s Wednesday interview on Channel 1+1.
In the interview, she describes her gas deal with Putin as the best in Europe, links RosUkrEnergo to the Party of Regions (plus Yushchenko), and refutes the possibility of Ukraine’s default.
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Original video source: http://5.ua