Germany Starts Gas Deliveries to Ukraine

Energy | April 15, 2014, Tuesday // 14:20|  views

German deliveries start days after Russian energy giant Gazprom said it was scrapping a special pricing regime which Ukraine had been enjoying for the last few years. Photo by EPA/BGNES

German RWE has started delivering gas to Ukraine via Poland.

RWE uses the services of Polish gas-transit company Gaz System, which has reported it will provide to Ukraine around 4 M cubic meters of gas on Wednesday, April 16, according to RBC Daily.

Under an existing agreement which will be in force until May 2017, RWE could deliver up to 10 B cubic meters of gas per year to Ukraine.

Ukraine's Energy Minister Yuriy Prodan was earlier quoted as saying that the country's EU-originated gas supplies would be secured by France and Germany.

Kiev has agreed to pay USD 386 per a cubic meter for the upcoming deliveries.

Previously, Polish gas infrastructure was used to supply Ukraine in November 2012, but the process came to a halt after Moscow offered Kiev a 30% gas price discount.

It used a special pricing regime to receive gas from Moscow before April 1, when Russia's Gazprom announced it was scrapping gas discounts and increased the cost by 80%.

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Tags: Germany, France, Ukraine, RWE, Kiev, Moscow, gas, discount


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