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Russia proposed Ukraine a discount on gas

Russia proposed Ukraine a discount on gas in the first quarter of 2016
Ukraine increased gas imports from Slovakia

Russian official web portal of legal information reported that Russian Prime Minister Dmitry Medvedev has signed an ordinance on gas supply export duty to Ukraine for the first quarter of 2016, Joinfo.ua reports.

According to the ordinance, the gas price for the first quarter 2016 will be $230 per 1,000 cubic meters. The discount will be equal to the export duty, which is $17.77 per 1,000 cubic meters. Thus, the offered price will be about $212.23 per 1,000 cubic meters, Joinfo.ua reports with reference to Interfax-Ukraine.

Earlier Volodymyr Demchyshyn, Energy and Coal Industry Minister of Ukraine said that Ukraine was ready to purchase Russian gas for the price below $200 per 1,000 cubic meters in the first quarter of 2016.

Russia sets the price for Naftogaz Ukrainy by providing discounts through special customs duties, being guided by spot prices for gas in Europe.

At the present moment, forward contracts for the first quarter of 2016 on European hubs are being traded at a level of $170 per 1,000 cubic meters.

Gazprom had earlier requested from Naftogaz a guarantee letter indicating its gas consumption obligations for the first quarter of 2016.