Stand-off over $2.2bn Ukraine gas bill The gas price that Russia will charge Ukraine has gone up by 80% from the discounted price that Russia had negotiated with the ousted Yanukovich in December 2013. The new price is about 25% higher than Gazproms average gas export price in Europe. However, it was never likely that Russia would continue to offer a steeply discounted gas price to the Ukrainian interim government, given that it seeks to bring about closer ties between Ukraine and the EU. In addition, Gazprom is demanding over $2bn in payments for past gas supplies, and this will add pressure on Ukraine, in addition to the higher price set last week. Although gas supplies to Europe have not been affected by the crisis so far, the price of gas, as well as payment of debts, will continue to be sources of tension between Ukraine and Russia, issues that resulted in temporary stoppages to gas supply in 2006 and 2009.
Posted on: Mon, 07 Apr 2014 10:57:37 +0000
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