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In the midst of the difficult global economic context, the price of natural gas in Europe set a new historical record by surpassing 585 dollars per 1,000 cubic meters.
On Monday morning, natural gas futures for September this year stood at almost $550 per 1,000 cubic meters, but by the end of the day they reached $586.3 per 1,000 cubic meters on the Dutch stock exchange, RIA Novosti agency reports.
The significant price rise is explained by the decision of the Russian company Gazprom to reserve a minimum of additional transit capacity for the Ukrainian gas transportation system, while during the previous months it reserved all the additional capacity of the infrastructure.
Oil and Natural Gas Corporation Ltd (ONGC) has benefited immensely from the surge in global crude oil prices so far and the effect of this was visible in its June quarter performance.
The decision may be motivated by the fact that the current commercial conditions are not suitable for Russia, an unnamed Gazprom source told Russian broadcaster RBC. "If there was a favorable offer on the gas pumping tariff, it could be considered," he said.
Gazprom declined to answer RBC's questions about the cost at the auctions of reserving additional capacity for gas transit through Ukraine.