Ukraine, Russia agree on new gas price

Moscow and Kiev have agreed on a new gas price and will sign an agreement in the next few days, a Ukrainian government source said on Wednesday.

“We have agreed on the gas price. Corresponding documents are expected to be signed in the next few days,” the source told RIA Novosti.

The source declined, however, to specify the agreed gas price for Ukraine.

Gazprom did not comment on the agreement.

On Tuesday, the Ukrainian business daily Economicheskiye Izvestia quoted a source in the presidential administration as saying that Russia and Ukraine had agreed on the reduction of Russian gas for Ukraine to $220-230 per 1,000 cubic meters compared to some $400 that Ukraine has to pay in the fourth quarter.

Ukrainian Prime Minister Mykola Azarov said on Tuesday that Ukraine was planning to save about $6 billion annually after reviewing gas contracts with Russia.

“As soon as we agree on gas prices, we will save an additional $500 million monthly, which is equivalent to $6 billion a year,” Azarov said.

Ukraine has long been seeking to alter the terms of the 2009 gas deal it signed with Russia. The deal ties the price of gas to oil prices, which have risen strongly since 2009, boosting Ukraine’s gas bill. The contract says Ukraine must import no less than 33 billion cubic meters of gas from Russia.

Kiev insists on reducing both the price and the volume of gas imports.


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