Ukraine raises transit tariff for Russian gas

In the first quarter of the year, the tariff was raised by 2.2 percent from the fourth quarter of 2010 to 2.84 U.S. dollars per 1,000 cubic metres for 100 kilometres.

From January 1, 2010, the transit tariff began to be calculated using the generally accepted European pricing formula. In early February 2010, Naftogaz Ukrainy said that the transit rate for Russian gas in 2010 was 2.78 U.S. dollars per 1,000 cubic metres for 100 kilometres.

The Ministry of Energy and Coal Industry told Itar-Tass that the gas transit tariff is not a fixed one and is calculated using a special formula that reflects changes in world hydrocarbon prices.

The long-term contract between Naftogaz Ukrainy and Russian Gazprom sets the base rate for the transit of Russian gas at 2.04 U.S. dollars and is charged for each 1,000 cubic metres per each 100 kilometres of transit.

In the first quarter of 2011, the transit tariff was 2.84 U.S. dollars per 1,000 cubic metres for 100 kilometres. Now it has grown to 2.89 U.S. dollars per 1,000 cubic metres for 100 kilometres.

Russian gas travels a distance of 1,240 kilometres across Ukraine before getting to Europe. According to Ukrtransgas, gas transit to Western Europe in the first seven months of this year increased by 14.46 percent to 63.851 billion cubic metres.

The Ukrainian authorities have begun a probe into the 10-year contracts for Russian gas supplies until 2020 which were made by the Yulia Timoshenko government. The ex-premier is facing charges of abuse of office when signing the gas contracts with Russia.

But the Russian Foreign Ministry said that all gas contracts were made in strict compliance with the laws of the two countries.

See www.itar-tass.com for full version.