Russia Begins Using It's Natural Gas 'Weapon' Against Ukraine

A file photograph of gas pipes at an underground gas storage facility in the village of Mryn, 120 kms north of Kiev. Reuters

Russia's Political Tool; Gazprom Threatens To Increase Gas Prices By 37 Percent To Ukraine -- IBTimes

Just days after the head of the Russian state-owned company Gazprom threatened to cut natural gas supplies to Ukraine, officials say the energy company is likely to increase prices by about 37 percent.

Prices could rise from $268.50 to $368.50 per 1,000 cubic meters of the fuel in the second quarter, Ukrainian Energy Minister Yuri Prodan said on Sunday, as reported by Interfax news agency.

Since ousted Ukrainian President Viktor Yanukovych fled to Russia in late February, Ukraine hasn't paid its gas bill that the company said is worth $2 billion.

“Either Ukraine makes good on its debt and pays for current supplies, or there is risk of returning to the situation of early 2009,” Gazprom’s CEO Alexei Miller threatened on Friday. Gazprom in 2009 cut gas supplies to Ukraine over price disputes.

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More News On Russian Natural Gas Exports To Ukraine

Ukraine expects gas price of $368.5 per 1,000 cubic metres from Russia -- Reuters
Ukraine Sees Gazprom Charging 37% More for Gas in Q2 -- Bloomberg
Gazprom warns Ukraine of gas export cut at USD 1.89 billion -- Steelguru.com
EU leaders draw up plans to send gas to Ukraine if Russia cuts off supply -- The Guardian
Germany's dependence on Russian gas poses risks for Europe - Polish PM -- Reuters
White House plays down speedy role for U.S. natural gas in Ukraine -- Reuters
Ukraine crisis: US plays down Russia gas threat -- Strait Times/AFP
West tries to shake Russia’s grip on Ukraine’s gas -- Market Watch
Energy Markets Watching the Diplomats -- WSJ

My Comment: This is a "red herring" .... US natural gas exports to Europe will not alleviate the situation ... not even close. Russia sells their gas at world market prices .... with Ukraine being an exception (they were paying a third below market prices). I doubt that US gas will be cheaper .... if anything .... it will probably be more expensive because of transportation costs.