Tags: Russia | Ukraine | economy | gas

Russia Hikes Gas Prices for Ukraine, Squeezes Fragile Economy

Thursday, 03 Apr 2014 08:14 AM

Russia increased the gas price for Ukraine to $485 per 1,000 cubic meters and urged Kiev on Thursday to pay its $2.2 billion debt, stepping up pressure on an economy already on the brink of bankruptcy.

The head of Russia's top natural gas producer, Gazprom , told Prime Minister Dmitry Medvedev that from this month the price would rise by 26 percent after Moscow introduced an export duty on gas to Ukraine.

Russia, no stranger to using its economic muscle for geopolitical gains, was incensed when protesters toppled pro-Moscow President Viktor Yanukovich, installing new leaders bent on pursuing closer ties with the European Union.

Russia's annexation of Ukraine's Crimea region last month deepened the worst East-West crisis since the end of the Cold War in 1991.

"The gas price is increasing automatically from April," Alexei Miller told Medvedev, adding that the end of zero-export duties would trigger the rise.

The increase came just two days after Gazprom announced a 44 percent hike in the gas price for Ukraine starting from April 1 to $385.50 per 1,000 cubic meters due to the unpaid bills.

Earlier on Tuesday, Gazprom said Ukraine had to increase the level of gas in storage to ensure its stable transit to Europe.

The European Union receives around half of Russian gas via Ukraine.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Markets
Russia increased the gas price for Ukraine to $485 per 1,000 cubic meters and urged Kiev on Thursday to pay its $2.2 billion debt, stepping up pressure on an economy already on the brink of bankruptcy.
Russia,Ukraine,economy,gas
216
2014-14-03
Thursday, 03 Apr 2014 08:14 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved