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Gazprom to end Ukraine gas price discount

MOSCOW – Gazprom is to discontinue its gas price discount for Ukraine starting from April.

According to Gazprom, Alexey Miller, chairman of the Gazprom Management Committee, reported to Dmitry Medvedev, the Russian Prime Minister, that Ukraine was still in debt to Gazprom for the natural gas supplied to the country last year and had an outstanding debt to repay for current supplies.

Given that Ukraine is not fulfilling its obligations reached when signing the contractual addendum providing a gas discount, Gazprom resolved to remove the discount.

During a meeting yesterday Miller said, “At the end of the last year it was agreed that Gazprom would give Ukraine a discount price for gas, provided that Ukraine would ultimately clear the debts accumulated over the last year and would pay in full for current gas supplies.”

According to Miller, Ukraine currently owes $1.529 billion; $1.3 billion has already been repaid.

When asked what measure should be taken to have the debt repaid, Miller replied that “the easiest and efficient way for Gazprom would be to provide Ukraine with a loan in the amount of $2 or 3 billion so that it could settle its indebtedness accrued from the last year and pay for current gas supplies.”

Medvedev responded, “It' s no secret that those 50 per cent they paid came from the sovereign loan we had given them. Of course, this is a possible way of resolving this problem."

The news comes amid heightened international tension over the crisis in Ukraine.

03/05/2014

 

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