Russia Today: Nord Stream will cost Gazprom more to export gas

Gazprom`s plans to transfer gas shipments from Ukraine to the Nord Stream pipeline are turning out unexpectedly expensive.

The price of moving gas through both Ukraine and Nord Stream significantly increased by 20 % in just first six months of 2012, Kommersant daily reports. At the same time the volume of Russian gas going through Ukraine decreased by 15% by the end of last year.  

Once the second stretch of the Nord Stream was opened at the end of last year it reached its full capacity of 55 billion cubic meters per year. However, the head of East European Gas Analysis Michael Korchemkyn says the pipeline is currently only using about one-third of its capacity. He believes switching gas export away from Ukraine to Nord Stream will mean not only higher delivery costs but also other expenses, Kommersant daily reports.  Many transit contracts with European countries have ship-or-pay condition and lower volumes mean fines for Gazprom. MORE