Discount over: Gazprom hikes Ukraine gas prices 44%

Russia’s state-owned gas major Gazprom announced a new price for gas exports to Ukraine of $385.50 per 1,000 cubic meters as of April 1, 2014. The price increased by $117 after Gazprom cancelled its discount agreed in December.

“This follows Ukraine’s default on its obligation to repay its debt for gas supplies in 2013 and the 100 percent lack of payment for current supplies,” Gazprom chief Aleksey Miller said Tuesday. Gazprom had until April 10 to decide on a new price.

The Russian government and Gazprom had announced they would stop providing Ukraine with a 33 percent discount after the first financial quarter of the year.

Transit fees for gas moving through Ukraine will also be bumped up 10 percent following an agreement reached in 2009.

Gas pricing disputes and unpaid bills have led Gazprom to turn off supplies through Ukraine twice, once in 2006, and again in 2009.

Full article: Discount over: Gazprom hikes Ukraine gas prices 44% (Russia  Today)

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