The Ukraine does not recognized the change to the gas discount terms: new problem in relations between Moscow and Kiev

The Ukraine has refused to acknowledge the cancellation of the gas discount for the location of the Black Sea fleet in Crimea in the amount of $100 per 1 thousand cubic meters. Such an approach can lead to registration of further increase of Naftogaz Ukrainy’s debt by Gazprom. But Gazprom needs Naftogaz to pump gas into the local underground gas storages to provide for transit to Europe in the winter. These two issues will be the main topic during negotiations of the companies this week.

On Friday, the Russian President, Vladimir Putin started procedure of the denouncement of the agreement with the Ukraine on the location of the Black Sea fleet, including the Kharkov agreements dated 2010, according to which Kiev received the gas discount in the amount of $100 per 1 thousand cubic meters in exchange of the prolongation of the fleet's location for 25 years. Moscow believes that after the affiliation of Crimea the subject of the agreement has gone. But Kiev doesn’t intend to acknowledge the cancellation of the gas discount on the Kharkov agreements, the Minister of Energy, Yuri Prodan stated to the Kommersant, added that Naftogaz Ukrainy wouldn’t pay the expected increase of the Russian gas price to $480 per 1 thousand cubic meters from April, 1st. Russian officials haven’t called the new price, but sources of the Kommersant in the Russian Government are sure that the price will increase to $480 per 1 thousand cubic meters from April, 1st.

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