In Ukraine, the cost of gas transportation will quadruple starting January 1

The National Commission for State Regulation of Energy and Utilities (NEURC) approved a resolution during its meeting today establishing “long-term regulatory parameters for incentive regulation for the Gas Transmission System Operator of Ukraine (GTSOU)” for the 2025–2029 regulatory period.

According to the resolution, the operator’s tariffs will increase fourfold, from 160 to 660 hryvnias (€3.7–15) per thousand cubic meters.

This increase is attributed to the cessation of Russian gas transit, with the resulting losses expected to be compensated by domestic consumers.

“In 2024, 85% of revenue comes from transporting gas of Russian origin. The remaining 15% is what we get from domestic customers. This tariff increase does not fully compensate for the shortfall, but we understand and agree, recognizing that Ukraine’s economy needs balanced decisions,” said Dmytro Lippa, CEO of GTSOU.

Earlier today, media outlets anticipated this tariff hike.

The transit of Russian gas through Ukraine’s GTS previously generated $700–800 million annually. Experts estimate that increasing the tariff by 500 hryvnias per thousand cubic meters will bring GTSOU an additional 10–11 billion UAH (approximately $250 million) in annual revenue. However, this will not fully offset the lost income.

As a result, tariffs may need to increase by another 2–2.5 times if the authorities aim to maintain GTSOU’s revenue at its previous level.