Gazprom and Naftogaz Ukrainy agreed about gas supply (Gazprom is planning to adhere to long-term contracts concluded with Ukraine in the gas sphere, the company's deputy CEO Alexander Ryazanov has told a briefing after negotiations with Naftogaz Ukrainy)

Gazprom is planning to adhere to long-term contracts concluded with Ukraine in the gas sphere, the company's deputy CEO Alexander Ryazanov has told a briefing after negotiations with Naftogaz Ukrainy. He reiterated that both sides would switch to free-market relations. Ryazanov deems it reasonable to start using transparent schemes of payment for gas and gas transportation instead of offsetting. At the same time he commented that this scheme is profitable for Naftogaz Ukrainy and Gazprom, but the Russian budget will suffer as a result, RBC reported.

The basic gas price for Ukraine is $80 per 1,000 cubic meters and the transit rate is $1.75 per 1,000 cubic meters per 100 kilometers, the official said. "By mutual agreement" these tariffs have been decreased to $50 and $1.09, respectively. At the same time, Gazprom's exports cost $160 per 1,000 cubic meters at Ukraine's western border.

Head of the Russian State Duma committee for energy, transportation and communications said the gas price for Ukraine should be calculated on a free-market basis (the cost of gas at Ukraine's western border minus the cost of transportation through the republic). The transit rate should also be raised to European standards.

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