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Actual gas selling price in Feb falls by 12.6% – Ministry of Economy

KYIV. March 13 (Interfax-Ukraine) – The actual selling price of natural gas, from which the royalty for its production in Ukraine is calculated, in February 2023 reached UAH 20,728 per 1,000 cubic meters, which is 12.6% less than in January (UAH 23,723), the Ministry of Economy said on its website.

According to Law No. 7732 on amendments to the calculation of the royalty for the use of subsoil for natural gas production, from August 1, 2022 and until the complete abolition of the ban on the export of Ukrainian gas, the calculation of royalty is based on the highest of three domestic selling prices.

NJSC Naftogaz Ukrainy in January (February) did not conclude contracts for the sale and purchase of gas from its own production in organized commodity markets (Ukrainian Energy Exchange, Ukrainian Universal Exchange, and Ukrainian Interbank Currency Exchange). Also in January (February), no relevant agreements were concluded, excluding NJSC and its subsidiaries, at organized commodity markets (on the Ukrainian Energy Exchange, Ukrainian Universal Exchange and Ukrainian Interbank Currency Exchange).

Therefore, the actual selling price was calculated based on the average prices UA VTP Gas price (arithmetic mean between the Bid and Ask prices in the Argus European Natural Gas and ICIS European Spot Gas Market reports) for the next month and on prepayment terms, on the basis of which the actual selling price was set for February at UAH 20,728 per 1,000 cubic meters.