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Ukraine needs a U-turn on transit fees – OIES

By Tom Hoskyns 24 November 2016
A compressor station in Ukraine. Raising tariffs may be exactly the wrong move. (Naftogaz)

Ukraine should scrap its proposal to hike gas transit fees in the short term if it wants to retain its role as a key transit state, according to a paper published on Wednesday by the Oxford Institute for Energy Studies.

Thierry Bros, the paper’s author, argued that by increasing fees Ukraine would become a less competitive transit route and provide a strong commercial case for the Nord Stream 2 pipeline.

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