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Gazprom Says Ukraine ‘Worried’ by Fourth-Quarter Gas Price

OAO Gazprom Chief Executive Officer Alexei Miller said Ukraine is concerned that fourth-quarter gas prices for Europe may reach $500 per 1,000 cubic meters.

European gas sold under long-term contracts may climb to that level by the end of the year because of the link to the price of oil and refined products, Miller told reporters today in Sochi, according to Moscow-based Gazprom’s press service. He was reiterating comments made in April that European sales may reach “records.”

This is worrying Ukrainian consumers, Miller said, according to the press service. Ukraine’s Prime Minister Mykola Azarov is scheduled to visit Moscow tomorrow.

Gazprom doesn’t plan to change the price formula for Ukraine, Interfax said, citing Miller.

Miller didn’t give an estimate for the price it plans to charge Ukraine, the press service said, commenting on earlier reports by RIA Novosti and Interfax. Ukraine now buys gas at “market level,” with a 30 percent discount that is capped at $100 per 1,000 cubic meters.

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