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Price tag for Russian gas to Ukraine could rise to $500

Published time: March 20, 2014 12:10
Reuters / Sergej Vasiljev

Reuters / Sergej Vasiljev

The price of Russian gas to Ukraine could rise to $500 per 1,000 cubic meters, as future developments in relations between Moscow and Kiev remain vague.

From April 1 the price Ukraine pays for Russian gas will go up to $360-$370 per 1,000 cubic metres, after Russia cancelled the discount agreed in late December, Pavel Zavalny, the head of Russian Gas Society told Izvestia newspaper.

In the worst case scenario, and Ukraine decides to take over Russian property, as well as new threats from radical nationalists, the price could jump to as high as to $500, the paper added.

Such a price rise may take place if the Kharkov agreement of 2010 is cancelled. Under its terms, Russia allowed a $100 discount to Ukraine for keeping its fleet in the Crimea, Izvestia quotes its source in Gazprom as saying.

“The discount of $100 was connected with the Russian fleet’s stay in the territory of Ukraine. Now, when circumstances change, it’s a big question, whether we can keep it in the future,” the Minister of Energy of Ukraine Yury Prodan said.

Gazprom has until April 10 to decide a new price.

Earlier this month Gazprom CEO Aleksey Miller said he didn’t want a gas war with Ukraine, but insisted Ukraine’s Naftogaz needs to follow the terms of the contract and pay the outstanding $1.8 billion debt.

Comments (55)

 

Dinko Kundalic 05.06.2014 18:39

starstuff 21.03.2014 08:43



Wh at makes you think that China is against Russia? Remember that China abstained from voting in the UN Crimea thing, to me that is a vote in favor of Russia.

Chi na have territorial disputes with Japan and there is that little run away province called Taiwan... among other things.

The only thing supporting the US are puppet governments... the people in those countries favor Russia's position.

  


You didn't understand me I am Pro Russia and Pro China in this case. I was arguing another persons comment that Crimea is a waste (Russian) of money.

 

DoAsk DoTell 24.03.2014 10:19

Should there be a new way to allocate trade of the fossil oil NOT based on the dollar regime which is unstable/destructive /based on outdated ideologies decades ago... from Old Boy Neanderthal Club?

Would a worldwide FAIR transparent standard of production/finance/r efining/distribution /environmental/marke t & without the Middlemen & Rentier Class?

Woul d a worldwide scheme based on "regional" trade and fair allocations and conservation of energy and its infrastructure? We all would have a say in the husbandry of these resources instead of WASTING it on fighting/wars/enemit y... for the Multinationals' benefits?

 

Andrew Jennings 23.03.2014 09:53

@basho


@basho
No need to worry re Ukraine's economy -the rest of the world will rally round us

And you're welcome to China but you're forgetting the fact that China is to review its energy strategy and take into account shale gas and LNG.

Beijing will have Gazprom by the balls over pricing, wrangling it down and with Gazprom having lost half its revenues which Europe provided, it will be desperately trying to make up the shortfall.

Bottom line here with price is, with energy sanctions on little Russia, Big China's position will strengthen.

Do try not to count your chickens before they hatch LOL!



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