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12 Dec, 2018 14:55

Cost of independence: Ukraine pays record high price for ‘European’ gas

Cost of independence: Ukraine pays record high price for ‘European’ gas

Prices for gas imported by Ukraine from European countries hit a record high in November, according to data published by the country’s State Fiscal Service. The gas is most likely Russian in origin resold to Kiev at a premium.

The State Fiscal Service of Ukraine calculated an average cost of imported natural gas that formed during its customs clearance when it enters the territory of Ukraine.

“The price totaled some 9,472 hryvnia ($339.2) per thousand cubic meters of the fuel,” the statement said, as quoted by the Ukrainian Independent Information Agency UNIAN.

In October, Kiev reportedly bought the vital fuel at $323.44 per thousand cubic meters, while the September price amounted to $304.36, compared to $261.1 paid in February.

Ukraine is paying an excessive price for gas with the numbers revealed by the government being “self-incriminating,” according to head of the National Energy Security Foundation Konstantin Simonov.

“The price is very high. It is necessary to take into account Russia’s proximity. Ukraine is very close to Russia logistically, and could get gas at lower prices compared to European consumers,” Simonov said in an interview with RT.

The analyst highlighted Kiev’s groundless pride over the fact that Ukraine doesn’t have any commercial contacts with “dangerous Russia.”

“However, Kiev still insists on transits of the fuel from Russia to Europe,” he said. “Due to its own stubborn streak Ukraine has lost colossal amounts of cash.”

Earlier, Russian Energy Minister Aleksander Novak said that Kiev halted purchases of Russian natural gas as early as in 2015. However, Ukraine reportedly continues buying reverse supplies of Russian gas at the higher price from European nations. The minister stressed that it’s not vital for Russia as actual volume of exports and export revenues remain the same.

Earlier this year, Ukraine’s Naftogaz Commercial Director Yuriy Vitrenko said the average price of gas from European suppliers exceeded the price of gas from Gazprom by almost 34 percent.

In October, the Ukrainian government announced a rise in household gas tariffs by more than 23.5 percent to unlock multi-billion-dollar loans from the IMF.

For more stories on economy & finance visit RT's business section