Ukraine May Increase Transit Costs of Russian Gas –Antanta Capital’s Analytic
Azerbaijan, Baku / Trend corr.А.Badalova / Ukraine may increase its transit prices for exported Russian gas, Timur Khayrullin, an on oil and gas analyst from the Investment company Antanta Capital, believes.
" Ukraine may increase its tariffs for gas for Gasprom. However, the country must substantiate itsincrease in tariffs," the analytic said.
Uzbekistan, following Turkmenistan, also plans to increase fuel prices exported to Russia.
Gasprom agreed to purchase gas from Turkmenistan from 2008 for $130 per 1,000 cu m. Russia will purchase gas for $150 from the second quarter of 2008 and from the beginning of January 2009, the gas price will depend upon the market principles. The issue concerning the increase in prices of gas by Uzbekistan will be discussed in December. "Naturally, the increase of gas prices by Turkmenistan and Uzbekistan will cause gas prices in Ukraine to increase," the analyst said.
The increase in prices will negatively affect Ukrainian's economy, energy, chemical industry, metallurgy, and other spheres. Ukraine may increase gas tariffs for Gasprom in order to compensate for the additional expenditures for gas. "Increased gas Ukraine prices may make up 30% or 40%," Khayrullin said.
The gas reserves in Georgia makes up 2.1bln cu m. Presently, Uzbekistan produces gas of 60bln cu per year.