Minister: Russian gas discount for Ukraine expires March 31

The discount was reduced to $17.77 for the first quarter of 2016, which with a contract price of about $230 resulted in a final price of $212.23.

The discount was reduced to $17.77 for the first quarter of 2016, which with a contract price of about $230 resulted in a final price of $212.23.

Valery Sharifulin/TASS
The new price will fully correspond to the Gazprom-Naftogaz contract

The duration of the winter gas package for Ukraine has expired and as of April 1 Russia will no longer grant a discount on gas it sells to the country, Energy Minister Alexander Novak said in a statement posted on the ministry's website.

"The discount on gas for Ukraine in the amount of $17.77 that was granted by the Russian government for the first quarter of 2016 expires on March 31, 2016. The final price of gas for Ukraine in the first quarter was $212 per 1,000 cubic meters. The agreements on the discount were established within the context of the so-called winter package, agreed by Russia, Ukraine and the European Union," Novak said.

"Beginning on April 1 of this year, the price of gas for Ukraine will fully correspond to the current contract between Gazprom and Naftogaz Ukraine," Novak said.

The Russian government approved a discount on Russian gas of $24.60 per 1,000 cubic meters on the contract price of $252 for the fourth quarter of 2015, which means Ukraine could buy the gas at $227.40.

The discount was reduced to $17.77 for the first quarter of 2016, which with a contract price of about $230 resulted in a final price of $212.23. But Ukraine believes this price is too high.

After trilateral negotiations in September, Naftogaz bought 2 billion cubic meters of gas from Gazprom in October and almost 400 mcm in November. As of November 25, Naftogaz completely stopped buying Russian gas and switched to buying cheaper gas from Europe.

All rights reserved by Rossiyskaya Gazeta.