Tuesday, April 1, 2014

Russian Pressure On Ukraine Now Begins With Higher Natural Gas Prices


Gazprom Hikes Ukraine Gas Price By A Third -- BBC

The Russian energy company, Gazprom has raised the price it charges Ukraine for gas by more than a third.

The company's chief executive Alexei Miller says the change was because Kiev has failed to pay its bills.

He said its current debt to Russia stood at just over $1.7bn (£1.02bn).

Russia had previously offered Kiev a subsidy, but the recent political crisis in Ukraine has led to a deterioration in relations.

Mr Miller says the price of Russian gas for Ukraine has gone up to $385.50 per 1,000 cubic metres in the second quarter of 2014 from the previous rate of $268.50.

It will mean Ukraine paying more than the UK for gas, having previously paid less, according to calculations by ICIS, the energy price-reporting agency.

Its research shows the from 1 April Ukraine will pay 25.40 euros (£21.04, $35.04) per megawatt hour for gas.

Read more ....

More News On Russia Ending it's Natural Gas Subsidy To Ukraine

Russian energy company hikes gas price for Ukraine amid turmoil -- FOX News/AP
Gazprom Raises Ukraine Gas Price as Government Seeks Cash -- Bloomberg Businessweek
Gazprom heaps pressure on Ukraine with gas price rise -- The Telegraph
Russia tightens squeeze on Ukraine with gas price rise -- Reuters
Russia ends Ukraine gas discount ahead of NATO meeting -- Global Post/AFP
Gazprom raises gas price for Ukraine to $385.5 per 1,000 cubic metres -- Reuters

My Comment: The big worry is over cross border trade between Russia and Ukraine. If Russia imposes tariffs on Ukrainian goods .... this will hurt the Ukrainian economy even more.

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