The Cabinet of Ministers has forbidden RosUkrEnergo to export natural gas of Central and Middle Asian origin, delivered to the Ukrainian gas transportation system from January 1, 2008.

This follows from the Cabinet's resolution No. 12 "On selling imported natural gas in Ukraine" dated March 12.

"From January 1 ... RosUkrEnergo's gas ... is used only to satisfy needs of Ukrainian consumers in accordance with the gas ... balance for 2008," reads the resolution.

With the resolution the Cabinet directed the State Customs Service from March to perform preliminary customs registration of gas delivered to the gas transportation system only by Naftohaz Ukrainy national joint-stock company at a price of USD 179.5 per 1,000 cubic metres.

Starting from March, imported gas must be sold in Ukraine by Naftohaz Ukrainy and its subsidiary Haz Ukrainy on condition of consumers paying 100% for the used fuel.

If the above-mentioned gas is not enough to meet demands of Naftohaz Ukrainy consumers, the company would sell its own gas.

The Cabinet orders that in keeping with the agreement made on January 4, 2006 Naftohaz Ukrainy pays for delivered imported gas to RosUkrEnergo or Gazprom Export (subsidiary of Russia's Gazprom) at the price of 179.5 per 1,000 cubic metres.

As Ukrainian News reported, on March 19, the Cabinet refused to ensure the withdrawal of natural gas from the Ukrainian underground storage facilities by RosUkrEnergo company and transit of RosUkrEnergo's Central Asian gas through Ukraine to European consumers.