OREANDA-NEWS. November 27, 2009. According to the Gasprom announcement, the average natural gas price for Ukraine will be established at USD 280 per tcm (thousand cubic meters) for the next year.  No details of this gas price increase schedule have been disclosed. Meanwhile, Ukraine Prime Minister Yulia Tymoshenko announced that in 1Q10, there would be no natural gas price hikes for domestic consumers in Ukraine.

Millennium Capital believes that the price for natural gas should grow in 1Q10 to at least USD 225 per tcm as compared to 4Q09, since, according to our estimation, the oil price, which is included in the gas price formula, grew by around 8% in the corresponding period. This suggests that either the gas price will increase for domestic consumers in 1Q10 or the State Budget Expenditures will continue growing in this period.