Ukrainian Energy Minister hopes to nearly double the tariff on gas transit in the country

Ukrainian Minister of Energy and Coal, Vladimir Demchishin,  plans on using the upcoming March 20 meeting between Ukraine, Russia and the European Union to discuss increasing the transit tariff of Russian gas.

Demchishin said: “The present-day rate is at $2.88 per 100km. While comparing the figure with tariffs in other states, I realized that it may be raised to $5.50 [per 100km]. I think that it will be rather difficult to negotiate such a tariff, but the goal I’m setting is to increase the tariff by at least 30%. This is my personal aim.”

The Energy Minister also said that Ukraine hopes to walk achieve a post-payment system for Russian gas, reports Russian news agency TASS. “If Ukraine manages to cut over to the post-payment gas import from Russia and Moscow demonstrates its readiness to do so, Ukraine will be ready to start purchasing fixed gas amounts.”

Demchishin added that if Ukraine is unable to secure a deal with a post-payment system that it will be satisfied continuing the pre-payment plan that came as part of the “winter package” negotiated between Russia and Ukraine last year. In his words, the pre-payment regime allows Kiev not to fix gas amounts.

Ukraine’s Prime Minister, Arseny Yatsenyuk, said that Ukraine hopes to address storage volumes and new suppliers during the meeting. “The idea is to fill up our gas storages in summer,” said Yatsenyuk when discussing the upcoming meeting. “The second issue is to agree on switching to gas exports from the E.U. countries.”

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