Ukrainian PM: German Gas Cheaper than Russian

The price of gas from RWE German company is cheaper than the price of Russian gas by USD 100 per one thousand of cubic meters. Prime Minister of Ukraine Mykola Azarov announced in Paris during a meeting with leaders of MEDEF International.

“We are purchasing gas from German RWE, pump it through Poland, Slovakia, Hungary and this gas is cheaper than gas we purchase on the border with Russia. And RWE sells us the gas it buys from Russia. This gas by passing the long network of pipelines returns to us and becomes by 100 dollars cheaper,” Mykola Azarov emphasized.

He underlined that through the oppressive gas contract of Tymoshenko Ukraine annually overpays to the Russian Federation for gas USD 7 bln. Pursuant to this deal Ukraine purchases Russian gas at the most expensive in Europe price – USD 530 per thousand of cubic meters.

Mykola Azarov reminded that during last three years the Government had been into negotiations on reconsidering of the contract of 2009, though it hadn’t been achieved yet. At the same time, the Government carried out a policy of energy effectiveness and increase of domestic production of carbohydrates. “We have already improved our domestic extraction by 1.5 billion cubic meters and within nearest time will increase it by 4 billion more,” Mykola Azarov informed.

He reminded that Ukraine had concluded contracts with world leaders concerning extraction of shale gas and was starting prospecting drilling.