Russian gas giant Gazprom earlier this month increased gas price for ~Ukrainian consumers to $485 per 1,000 cubic meters (tcm) from $268 for the first quarter, saying Kiev was no longer eligible for previous discounts.
“The question of repayment of debt is directly linked to the maintenance of gas prices at the level of the first quarter,” Kobolev told the Zerkalo Nedely weekly in an interview, referring to the original price of $268 per tcm.
“We see no reason to revise the price. We consider the price at around $500 as non-market, unjustified and unacceptable. Accordingly, we have suspended payments for the period of the price negotiations.”~
Western Europe pays around $500.
Ukraine has just rejected a trade agrement and any special ties with Russia for EU.
Why special price?
I think there was a contract involved. (That being said, there’s no dispute that Russia was in fact subsidizing Ukraine’s gas imports).
What’s in it for Russia? Ukraine wants special treatment im exchange for NOT joining the Russian-led Customs Union.
Kiev is going to learn it can’t have it both ways and as a consequence, Moscow is going to shut off the gas for non-payment. Its fully within its rights to do so.