Prices and Pricing

In accordance with powers specified by the Cabinet of Ministers of Ukraine, natural gas boundary prices for all categories of customers are adopted by the National Electricity Regulatory Commission of Ukraine.

Since January 1, 2006 boundary wholesale gas prices for Ukrainian customers (taking into account transmission and supply tariffs and VAT) are:

• for municipal heat-and-power engineering enterprises — UAH 304.50 for 1,000 cubic meters;
• for budget organizations and agencies — UAH 288.00 for 1,000 cubic meters;
• for the population — UAH 185.00 for 1,000 cubic meters.

The indicated natural gas price level for the population has not changed since April 1999. At the same time, the key component of the boundary price – the price for gas as a commodity – has decreased by 22.6% as compared to the date when it was set.

• for industrial customers (without taking into account transmission and supply tariffs and VAT): UAH 422.1 for 1,000 cubic meters.

Since February 20, 2006 the boundary gas price for industrial customers was set by the NERC at the level of UAH 548.0 for 1,000 cubic meters (without taking into account transmission and supply tariffs and VAT, which corresponds to the economically justified level.

In order to ensure profitability of economic activities of NJSC Naftogaz of Ukraine, which is necessary for the operation of sectoral companies and for production growth, it is economically important to bring natural gas sales prices for Ukrainian customers in line with the economically justified level.

Prices for Natural Gas Delivered to European Consumers in 2006 (VAT included)

The world gas market is only at the stage of being shaped. Natural gas price levels in Europe, just as elsewhere in the world depend on changes in oil and oil products prices.