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Ukraine does not agree to Russia’s $100 gas price discount — ministry

August 29, 2014, 20:06 UTC+3 MOSCOW
Ukraine Energy Minister Yuriy Prodan said that Ukraine was disappointed “by the absence of a constructive approach from Russia at the talks on settling the issue of natural gas supplies to Ukraine”
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Ukrainian Energy and Coal Minister Yuriy Prodan

Ukrainian Energy and Coal Minister Yuriy Prodan

© EPA/JULIEN WARNAND

MOSCOW, August 29. /ITAR-TASS/. Ukraine does not agree to a $100 gas price discount offered by Russia, the Ukrainian Energy and Coal Ministry said on Friday.

Russian Energy Minister Alexander Novak said on Friday after talks in Moscow with EU Energy Commissioner Guenther Oettinger and Gazprom head Alexei Miller that Russia was ready to offer Ukraine a $100 discount for its contractual price of $485 per 1,000 cubic meters as a compromise option to settle the gas dispute between Moscow and Kiev.

Ukrainian Energy and Coal Minister Yuriy Prodan said, however, that Ukraine was disappointed “by the absence of a constructive approach from Russia at the talks on settling the issue of natural gas supplies to Ukraine.”

“We again hear the price of $385 based on a $100 discount from the price of $485 due to the duty cancellation. This means that the Russian side considers the price of $485 to be fair and consistent with market trends. However, we believe this is a discriminatory price,” the Ukrainian Energy and Coal Ministry’s press office quoted Prodan as saying.

Prodan said Ukraine had made several proposals, including jointly with the European Commission, on really market-based pricing mechanisms.

“Our latest proposal is to calculate the price proceeding from spot prices on European gas hubs, reducing it by the amount of costs for gas transportation from the Russian border to EU countries,” Prodan said.

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