Ukrainian steelmakers and producers of chemical fertilizers will receive an unexpected advantage over western European rivals in line with the intention of Russia's top gas company Gazprom to increase the average gas price to Europe by about 15 percent on the back of the recovery of demand, the Kommersant-Ukraine newspaper has reported.
Accordingly, Gazprom's gas price for western Europe will reportedly be reviewed in March, while the price for Ukraine will be reviewed close to April. Meanwhile, it is considered that the price increase for Ukrainian producers will not be so significant due to differences in the pricing formula.
According to analysts, the production costs of European steel producers will increase by two to three percent because of rising gas prices.