Gas prices in Ukraine rise to record high for first time in 2 years

Natural gas prices in Ukraine have risen to their highest level in more than two years, since February 2023, and on May 26 reached UAH 23,000/1,000 cubic meters (including VAT).

This is reported by the ExPro publication, the Ukrainian News agency reports.

The report states that according to ExPro quotes, gas in Ukraine on Monday, May 26 was traded at prices of UAH 22,800 - UAH 23,200/1,000 cubic meters (including VAT), depending on the resource.

When converted, the cost of gas is UAH 19,000 - UAH 19,333/1,000 cubic meters (excluding VAT) or USD 458-466/1,000 cubic meters or EUR 38.15-38.83/MWh.

It is noted that in May, the market has seen a significant excess of demand over supply, which is pushing prices up.

Since the beginning of April, the Cabinet of Ministers has obliged Ukrnafta to sell its own gas to Naftogaz under PSO terms.

In addition, Ukrnaftoburinnya, which is under the management of Ukrnafta, has also stopped selling gas on the free market, which has significantly reduced supply volumes.

Natural gas prices on the Ukrainian market exceed prices on the European market, and the difference between prices in recent days has reached EUR 2/MWh, which is the highest value in February 2024.

The existing spread is not yet sufficient for the full restoration of commercial imports of natural gas to Ukraine, since it does not cover the entire margin.

If the difference between Ukrainian and European prices for natural gas continues to increase, there is a high probability of the restoration of gas imports to Ukraine by private companies.

As the Ukrainian News agency earlier reported, natural gas prices in Ukraine on April 29 exceeded spot natural gas prices in Europe for the first time in almost a year.

The European Parliament supported the introduction of new duties on fertilizers and certain types of agricultural products from russia and Belarus from July 1, 2025.

From July 1, duties on some nitrogen fertilizers will increase gradually - from the current 6.5% to approximately 100%.

The increase in gas prices will hit Ukrainian fertilizer producers.