OREANDA-NEWS. July 29, 2010. The Ukraine energy market regulator has raised the selling price of natural gas produced by Ukrnafta, a major oil & gas producer in Ukraine, by 2.2 times to UAH 458 from UAH 210 per 1,000 cubic meters (exl. VAT), the regulator’s statement indicated on July 27. At the same time, natural gas prices were also raised for Ukrhazvydobuvannia (to UAH 350 per 1,000 cm) and Chornomornaftohaz (to UAH 456 per 1,000 cm).

Millennium Capital considers the news as positive for UNAF as the price increase may generate up to UAH 2.1 bln of additional revenues if the company decides to sell gas. Meanwhile, the company representative pointed out that Uknafta perceives that the price increase is insufficient to induce it to start selling its natural gas. Besides the impact on Ukrnafta, the current selling price increase indicates a positive movement towards the partial liberalization of the natural gas market that may eventually stimulate more active exploration in the country.