Gazprom cancels gas discount for Ukraine over debt - Miller

April 2, 2014

Russian gas giant Gazprom has cancelled a discount it made for Ukraine in December and has raised the price to U.S. $385.5 from $268.5 for 1,000 cubic meters, CEO Alexei Miller said on April 1, Prime has reported.

“In accordance with the current gas contract, the price for Ukraine will amount to $385.5 in April–June. The December’s gas discount can no longer be used,” Miller told reporters.

“This was predetermined and it arises from Ukraine’s failure to repay the 2013 gas supplies debt and the absence of a 100% pre-payment for current deliveries, and, therefore, the buildup of the gas debt. The debt stands at $1.711 billion.”

Ukrainian Energy Minister Yury Prodan said: “Our delegation will go to Moscow on Thursday and talk about this problem,” referring to the redemption of the rising gas debt.

Gazprom will pay 10% more for gas transit to Europe through Ukraine under the contract, Miller said.

Copyright: Prime, 2014