Ukraine May Suffer Kazakhstan’s Decision to Increase Transit Tariffs for Russia

Ukraine May Suffer  Kazakhstan’s Decision to Increase Transit Tariffs for   Russia

Azerbaijan, Baku, 5 February /corr. Trend A.Badalova / The large Russian gas monopolist Gazprom may increase gas prices for Ukraine in order to compensate for losses resulting from Kazakhstan's decision to increase tariffs for the transit of Middle Asian gas.

GazTransGaz JSC (gas-transporting daughter company of Kazakhstan's Oil and Gas Company GazMunayGaz) increased tariffs for Gazprom for the transit of Middle Asian gas and Russian gas via the territory of Kazakhstan by 21.4%. Earlier the transit tariffs made up $1.1 for thous cu.m per 100km. The new tariff, which came into force on 1 January 2008, totals $1.4 per thous cu.m.

According to the analyst of Antanta Kapital, Timur Hayrullin, the news of the increase in tariffs for the transit of Middle Asian gas via the territory of Kazakhstan was neutral for Gazprom. "Gazprom may lay the increasing expenses on Ukraine, the end-of-the-line consumer of the Middle Asian gas," he reported to Trend on 5 February.

The price of the gas for Ukraine in 2008 was determined at $179.5 per thous cu.m. In addition, Gazprom and Ukraine reached an agreement to increase the tariffs for gas transit via the territory of Ukraine from $1.6 in 2007 to $1.7 in 2008 per thous cu.m.

"In addition, the new level of the transit tariff is cheaper than market prices. Gazprom pays to the European countries $2-3 for transit of thous cu.m," Hayrullin said.

The gross volume of the Russian gas planned to be transported via Kazakhstan's territory in 2008 exceeds 47bln cu.m and Middle Asian gas - 54bln.

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