Ukraine raises transit tariff for Russian gas.

KIEV, August 18 (Itar-Tass) -- Ukraine has raised the transit tariff
for Russian natural gas in the third quarter of 2011 to 2.89 U.S. dollars
per 1,000 cubic metres for 100 kilometres.
In the first quarter of the year, the tariff was raised by 2.2 percent
from the fourth quarter of 2010 to 2.84 U.S. dollars per 1,000 cubic
metres for 100 kilometres.
From January 1, 2010, the transit tariff began to be calculated using
the generally accepted European pricing formula. In early February 2010,
Naftogaz Ukrainy said that the transit rate for Russian gas in 2010 was
2.78 U.S. dollars per 1,000 cubic metres for 100 kilometres.
The Ministry of Energy and Coal Industry told Itar-Tass that the gas
transit tariff is not a fixed one and is calculated using a special
formula that reflects changes in world hydrocarbon prices.
The long-term contract between Naftogaz Ukrainy and Russian Gazprom
sets the base rate for the transit of Russian gas at 2.04 U.S. dollars and
is charged for each 1,000 cubic metres per each 100 kilometres of transit.
In the first quarter of 2011, the transit tariff was 2.84 U.S. dollars
per 1,000 cubic metres for 100 kilometres. Now it has grown to 2.89 U.S.
dollars per 1,000 cubic metres for 100 kilometres.
Russian gas travels a distance of 1,240 kilometres across Ukraine
before getting to Europe. According to Ukrtransgas, gas transit to Western
Europe in the first seven months of this year increased by 14.46 percent
to 63.851 billion cubic metres.
The Ukrainian authorities have begun a probe into the 10-year
contracts for Russian gas supplies until 2020 which were made by the Yulia
Timoshenko government. The ex-premier is facing charges of abuse of
office when signing the gas contracts with Russia.
But the Russian Foreign Ministry said that all gas contracts were made
in strict compliance with the laws of the two countries.
Under the agreement reached on October 27, 2010, the price of Russian
gas was about 264 U.S. dollars per 1,000 cubic metres in the first quarter
of 2011, 295.6 U.S. dollars in the second quarter and 355 U.S. dollars in
the first quarter. The average price of gas for Ukraine in 2011 will be
280 U.S. dollars per 1,000 cubic metres, as was projected.
After a meeting of the Committee on Economic Cooperation of the
Russian-Ukrainian Interstate Commission in Sochi on April 30, Russian
Prime Minister Vladimir Putin suggested that Gazprom and Naftogaz Ukrainy
mighty merge their assets.
In December 1, 2010, Gazprom CEO Alexei Miller and Ukrainian Energy
and Coal Industry Minister Yuri Boiko agreed to set up two joint ventures:
one for the production of gas form coal seams in Ukraine and the other one
for the development of the offshore Palas block in the Black Sea.
On May 24, 2011, Yanukovich said he would press for a reduction of the
Russian gas price by almost 20 percent to 240 U.S. dollars per 1,000 cubic
metres.