Ukraine to save $6 bln after reviewing gas contracts with Russia

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


“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.


On Tuesday, the Ukrainian business daily Economicheskiye Izvestia reported that Moscow and Kiev have agreed on the reduction of Russian gas for Ukraine to $220-230 per 1,000 cubic meters.


An official confirmation of the deal has yet to be announced.


Ukraine is 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 steeply since the agreement was reached. This had caused Ukraine’s energy bill to balloon. Kiev is insisting on a reduction in both the price and the volume of imports.


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