The National Electricity Regulatory Commission of Ukraine (NERCU) with its Resolutions dated 19 February 2009 No. 195 and No. 194 approved the threshold level of prices for the natural gas for 2009 which, excluding VAT and fee for the approved natural gas tariff in the form of targeted extra-charge, fees for transportation, distribution and natural gas supply, as per set tariff equals to:

  • 2020.25 Ukrainian hryvnias per 1000 m3 – for business and industrial customers and other subjects of business activity;
  • 1899.25 Ukrainian hryvnias per 1000 m3 – for ore mining, smelting and chemical enterprises, according to the List of Ore Mining and Smelting and Chemical Enterprises;
  • 2020.25 Ukrainian hryvnias per 1000 m3 – for the institutions and organizations which are sponsored out of the state and local budgets.

The Resolutions of the NERCU as of 29 January 2009 No. 57 "On Adoption of the Threshold Levels on Prices for Business Customers and Other Subjects of Business Activity for 2009" and No. 56 "On Adoption of the Threshold Levels on Prices for the Institutions and Organizations Sponsored Out of the State and Local Budgets for 2009" lost their validity in connection with the adoption of the abovementioned Resolutions No. 195 and No. 194.

Procedure for Natural Gas Pricing

The National Electricity Regulatory Commission of Ukraine (NERCU) with the Resolution dated 22 January 2009 No. 35 adopted the Procedure of Formation, Calculation and Approval of the Natural Gas (including oil gas) Prices for the Gas Production Entities.

The Procedure applies to all business entities of gas production and is subject to the compulsory implementation.

Prices for natural gas calculated according to the Procedure shall guarantee the following for gas producers:

  • recovery of the economically proven costs of production for the planning period;
  • enough profit for implementation of the investments program (the capital investment plan) separately for each gas deposit for the planning period;
  • payments of taxes, other compulsory budget payments provided for by the legislation of Ukraine.

Formation of the natural gas prices is accomplished in accordance with the applicable legislation of Ukraine based on the natural gas production yearly plans, economically proven planned expenses specified by the resources state predetermined costs, technical-economic calculations, rates of taxation and other compulsory payments, and on the natural gas planning prices determined by the forecasting prices indexes of the industrial products manufacturers for the appropriate year.

For the formation of the natural gas prices business entities shall file to the NERCU an application and reasoned calculation of the price for the planning period, expected data for the price in the base period, records for the same period of last year sealed and certified by the director.

The decision regarding the approval of the natural gas price is taken by the NERCU by the adoption of a corresponding Resolution. Such Decision shall be published in the official newspaper of NERCU. The copy of the Decision shall be sent to the gas producer by a registered mail within 3 days after the publication.

Price Record for Certain Types of Products

Pursuant to the Resolution of the Cabinet of Ministers of Ukraine No. 1138 dated 27 December 2008 domestic legal entities selling the ore mining, coal and metallurgical products to the state enterprises and business entities paying out of the state budget shall register the prices for such products. The abovementioned organizations shall have to file to the Ministry of Economy of Ukraine the appropriate application, calculation of prices and certificate of actual and planned net profit margin of production.

Based on the filed documents the Ministry of Economy of Ukraine shall make the decision on registration of the prices or refusal in such registration. By the same Order the Ministry of Economy of Ukraine adopted that the Ministry Pricing Policy Department shall perform the registration directly. The authority to sign of the above mentioned decisions shall have the Deputy Minister of Economy.

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