Natural gas prices on the Ukrainian market have increased by 20% over recent days, reaching 27,800 UAH/tcm (incl. VAT) on Tuesday.

Domestic market prices have reached their highest level in more than half a year, since June 2025. In recalculated terms, the gas price stands at $536/tcm (excl. VAT) or €43.2/MWh.

Nevertheless, the increase in natural gas prices in Ukraine remains significantly lower than in Europe, where prices climbed to €65.5/MWh on Tuesday, the highest level since January 2023. As a result, gas in Europe is currently trading at a premium to Ukrainian prices.

Reasons behind the increase

Natural gas prices in Ukraine are rising under the indirect impact of the war in the Middle East. On Saturday, February 28, the United States launched a military operation against Iran, which responded with attacks on facilities in the region.

Following the escalation, global LNG supplies have been disrupted. Qatar, the world’s second-largest LNG exporter, has halted LNG production and exports. The UAE has also suspended LNG exports amid Iranian attacks on tankers passing through the Strait of Hormuz.

Against the backdrop of reduced LNG supply on the global market, prices at European hubs have surged sharply, which in turn has supported higher gas prices in Ukraine.

At the beginning of the month, demand for natural gas remains present on the domestic market, particularly from traders who did not purchase March volumes in February. At the same time, supply volumes have declined as most private production companies have already sold their March resource.

Among the few remaining sellers are Ukrnafta and Ukrnaftoburinnya, which sell their own gas via the Ukrainian Energy Exchange. In particular, Ukrnaftoburinnya sold the March resource on the exchange on Tuesday at 27,840 UAH/tcm (incl. VAT).