Economy Russia extends natural gas discount to Ukraine

Russia extends natural gas discount to Ukraine

 

President Vladimir Putin (L) speaks with Alexei Miller, CEO of Russian energy supplier Gazprom
President Vladimir Putin (L) speaks with Alexei Miller, CEO of Russian energy supplier Gazprom

(AA) – Russia has agreed to extend Ukraine’s discount on natural gas prices until July, Russian officials have said.

Ukraine will buy natural gas at a discount for three more months after Russian President Vladimir Putin and Russian PM Dimitri Medvedev approved the decision taken by the Russian government on Wednesday.

Medvedev said Ukraine’s economic situation had been taken into account and all deals between Russia’s Gazprom and Ukraine’s Naftogaz would be “fully realized”.

Gazprom asked the government on Monday for a discount price for exporting gas to Ukraine, the company’s CEO Alexey Miller said, after Naftogaz sent a letter to Gazprom proposing that the winter package agreements on gas supplies from Russia be extended.

Both Gazprom and Naftogaz filed claims last year in an arbitration court in the Swedish capital of Stockholm about levels of debt accrued through natural gas prices. 

Novak stated on March 20 that Ukraine’s debt for Russian gas stood at $2.47 billion, including penalty fees and fines.

Naftogaz announced it had transferred $15 million to Gazprom on March 20 as an advanced gas payment, and had also paid $90 million since Feb. 26.

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