Gas prices in Ukraine have risen to a record high, surpassing European prices. Kyiv is preparing for imports through a new route via Greece.

On May 26, natural gas prices in the Ukrainian market reached ₴23,000 per 1,000 cubic meters (including VAT). The cost of gas has climbed to the highest level in over two years and exceeded European market prices, equating to $458-466 per 1,000 cubic meters or €38.15-38.83 per MWh. The difference compared to European indicators is €2 per MWh, the highest value since February 2024. Analysts attribute the price surge in the domestic market to a significant excess of demand over supply.

However, the current spread is not sufficient to fully restore commercial natural gas imports to Ukraine, as it does not cover the entire margin. If the gap between Ukrainian and European prices continues to widen, there is a strong likelihood that private companies will resume gas imports to Ukraine.

In the meantime, the National Commission for Energy Market Regulation has streamlined the transportation of gas to Ukraine via the Trans-Balkan Corridor. Now, the capacity for transporting gas through this route from Greece will be allocated via a single joint auction, allowing for approximately three million cubic meters of gas per day or one billion cubic meters per year. This should provide an alternative to Russian gas for Ukraine and neighboring countries, enhancing energy security.