Russian minister rules out old gas price for Ukraine

May 20, 2014

Russia is ready “to discuss discounts on gas prices with Ukraine but it is impossible to return to the price that existed in the first quarter of 2014,” Russian Energy Minister Alexander Novak told a news conference in Berlin after meeting EU Commissioner for Energy Gunther Oettinger on May 19.

“We believe that it is impossible to use the figure of $268 per 1,000 cubic meters of gas in our price discussions. That was the price for the first quarter established by a contract that had not been extended. We have the current contract and a price formula fixed in this contract according to which the price is $485. This is the price which can be considered,” Novak told journalists.

“We can discuss discounts on this sum if mechanisms of settling (Ukraine’s) outstanding debt and ensuring Ukraine’s further solvency can be found,” the Russian energy minister added.

“We do not understand the reasons for raising this question. The price of $268 cannot be considered under the current circumstances because it does not match even average European market prices,” Novak explained.

Copyright: ITAR-TASS, 2014