Russia Announces Second Gas Price Hike for Ukraine

Business » ENERGY | April 3, 2014, Thursday // 17:08| Views: | Comments: 6
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Bulgaria: Russia Announces Second Gas Price Hike for Ukraine Photo by EPA/BGNES

Russia will raise the price of gas for Ukraine to USD 485 per 1000 cubic meters.

The latest increase, which is the second in just two days, suggests that Russia's state-owned energy concern Gazprom is to sell gas to Kiev for 80% more than what it charged under the old "special" pricing regime that was in force until April 1, estimates by the Frankfurt Allgemeine Zeitung have suggested.

The news was first reported by Gazprom's chief executive Alexei Miller, short after a Ukrainian delegation was in Moscow to negotiate new possible discounts.

Miller held talks with Ukraine's Energy Ministry officials, MPs from Kiev and Ukrainian energy entity Naftogaz's representatives.

He also met Russian President Dmitry Medvedev, who has been actively involved in decision-making on the issue. New pricing offered by Gazprom is unprecedented in comparison to what is being offered to other European countries.

Miller justifies price hikes with delays on Ukraine's payments to Gazprom, which reportedly amount to USD 2.2 B (EUR 1.6 B).

Earlier Moscow also introduced an export duty on gas to Ukraine.

Existing discounts prior to April were made in accordance with a 2010 agreement between Kiev and Moscow envisaging reduced gas prices in return of an extended lease of Crimea-based Black Sea Fleet until 2042 (without the deal it would have ended as early as 2017).

The document signed by ousted President Yanukovych however is no longer deemed valid, as Ukrainian agency UNIAN reported Kiev had received Russia's formal denunciation of the agreement.

Crimea is not virtually part of Russia's territory after a regional vote which approved its secession from Ukraine.

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Tags: Ukraine, Gazprom, Medvedev, Crimea, Miller, gas
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» To the forumComments (6)
Optimistic - 4 Apr 2014 // 15:02:48

Anglais on fracking France and Bulgaria don't allow it, what is happening in the UK on it?

Yes Europe could become energy independant through fracking but Europeans are very worried about the environmental and health risks.

The US do a lot of fracking, they don't care about the health of their people, they even closed the government last year to try to stop Obama getting his programme through to provide healthcare for everyone!!!!!!!

Maybe supply the Ukraine with gas by fracking in the UK?

je suis anglais - 4 Apr 2014 // 10:15:34

whilst i feel for the plight of the poor repressed ethnic russians, i don't think depending on the USA for energy would be a step towards "energy independence"?

Optimistic - 4 Apr 2014 // 09:02:25

Anglais yes frack in the US for gas and send it to Europe if you want.

You cannot frack in the Eastern Uraine as this would damage the health of ethnic Russians and would be blatant descrimination against them.

je suis anglais - 4 Apr 2014 // 08:43:31

Ukraine and Europe should invest heavily in renewable energy and fracking, and shut down the KGB pipelines, sending Russia back into the dark days of queuing for non-existent food - if the people vote for the KGB, they can have their iron curtain too.

Optimistic - 3 Apr 2014 // 23:12:46

Yes, Russia should charge what it wants.

The Ukraine wants an EU type free market economy so they should pay the market price for its gas. Russia is teaching them useful free market skills.

Russia should ask for payment in advance for the gas because of the risk of the Ukraine not paying the bill.

je suis anglais - 3 Apr 2014 // 21:57:23

the true colours of the dirty bullying tsar Putka and his corrupt tentacles such as gazprom have taken very little time to come through. Ukraine should default on the outstanding debts, commence fracking and bring in green energy, and then totally boycott disgusting KGB owned products and services.

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