The price will soar three times: Russia wanted to calculate the gas tariff for one of the European countries in a new way

The current gas contract between Serbia and Russia is valid until the end of the year.Serbia is now buying gas from Gazprom for $ 270 / Illustration REUTERSSerbia is now buying gas from Gazprom for $ 270 / Illustration REUTERS

Russia announced to Serbia a new formula for calculating the cost of gas .

It is reported by  b92.net .

According to Serbian President Aleksandr Vucic, according to the new calculation formula, the price will almost triple – up to $ 790 per cubic meter.

According to the politician, his country simply will not be able to pay such amounts.

Vucic noted that Serbia is now buying gas from Gazprom for $ 270.

“The Russians said that the price should be calculated by 70% according to the exchange value and by 30% according to the oil formula, that is, 790 instead of $ 270, which we are now paying 100% according to the oil formula,” Vucic said.

The head of Serbia noted that he proposed that the gas price be calculated by 70% according to the oil formula and by 30% at the exchange value. In this case, Serbia would buy fuel at $ 510 per cubic meter. 

The current gas contract is valid until the end of the year.

Gas tariffs in Ukraine:

On September 30, the Cabinet of Ministers, NJSC Naftogaz of Ukraine and the Congress of Local and Regional Authorities under the President of Ukraine signed a memorandum of understanding, which stipulates that during the heating season 2021-2022, tariffs for heat and hot water for the population will not increase.

At the same time, Naftogaz stated that schools, kindergartens and hospitals and other budgetary organizations will be able to buy gas at UAH 13.7 per cubic meter. But this does not include value added tax and transportation costs.

On October 6, the selling price of gas in Europe reached almost $ 2 thousand per thousand cubic meters, which is an absolute record.

According to the Ukrainian Energy Exchange, the weighted average cost of gas at European hubs to the Ukrainian border reached UAH 40 per cubic meter.

At the same time, for residential consumers in our country, there is an annual gas price offer from 7.96 to 13.5 UAH per cubic meter, and for heating companies “Naftogaz” offers three-year contracts at a price of 7.42 UAH per cubic meter for the first year.

On October 13, Naftogaz announced that it intends to offer contracts for the supply of gas at a fixed price to private enterprises .

On October 16, 2021, Naftogaz assured that the price of gas for the population would not rise this winter

Gas transit through Ukraine:

Transit of natural gas through the Ukrainian gas transmission system (GTS) in January-September 2021 decreased by 17% compared to the same period last year – to 32.6 billion cubic meters.

“Operator of GTS of Ukraine” offers about 80 million cubic meters. m per day of additional capacity for gas transit to Europe, but the results of the auctions show that Gazprom is not interested in increasing supplies.

The Ukrainian GTS is used by less than a third of the total transit capacity of 146 billion cubic meters. m per year. These unused capacities, which are twice the capacity of Nord Stream 2, can be used to increase gas supplies to the EU.

On October 1, Gazprom  stopped the transportation of  gas through Ukraine to Hungary. This was a consequence of the signing between the parties of a new long-term contract for the supply of gas bypassing Ukraine and provokes an increase in gas prices in Europe.

On October 12, 2021, the President of the European Commission, Ursula von der Leyen, announced that the European Union would help Ukraine with gas .

(c)UNIAN 2021

2 comments

  • And Merkel time and time again assured Europe that her old friend Vladolf would NEVER NEVER use gas as a political weapon. Meanwhile some in Europe are closing their coal mines, nuclear power plants, gas contracts that flow through Ukraine and cancelling plans to build LNG terminals. Plus US president Mr. Magoo is closing down American production thinking that will lower prices….everything Leftists do is backwards if you expect good results for people.

    Liked by 2 people

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