Ukrainian Energy Exchange to start trading natural gas without VAT July 1

MOSCOW. June 22 (Interfax) - The Ukrainian Energy Exchange (UEEX) will switch to trading natural gas without value-added tax effective July 1, Ukrainian media outlets said with the reference to the UEEX website.

"Responding to the requests of market participants, the Ukrainian Energy Exchange made changes to the functionality of trading systems in the Natural Gas direction, the purpose of which is to display the price and cost of goods without VAT," the UEEX said.

"Now the price of the exchange wholesale market, represented by the UEEX long-term, medium-term and short-term natural gas market, will correlate with the prices of European markets and will be more in line with established international practices, according to which trading on the wholesale energy market takes place without taxes," the exchange said.

Therefore, beginning July 1 bidders will have to indicate the bid price in thousand cubic meters without VAT when entering the volume and price of bids (including bids in the form of a position).

Publication of information on natural gas trading, including (but not exclusively) Auction Bulletins, Bulletins of weighted average prices, quoted prices and other trading indicators on the UEEX website will be made excluding VAT from July 1, 2022. The results of trading in natural gas before the specified date will remain unchanged.

The UEEX initially planned to start trading natural gas without VAT on June 1.