Accessibility links

Breaking News

Kyiv, Moscow Formalize Cheaper Gas Deal

A gas pipeline with pressure gauge at a compression station in the village of Boyarka, near Kyiv
Ukraine and Russia have signed a formal amendment to a natural-gas contract that cuts the price of Russian gas by one-third for the first quarter of 2014.

Ukraine's energy and coal industry minister, Eduard Stavytskyy, told journalists that the agreement established the price of Russia's natural gas to Ukraine at $268.50 per 1,000 cubic meters.

The deal was reached last month, a few weeks after Kyiv walked away from signing a free-trade pact with the European Union.

A new price level must be confirmed every quarter, an arrangement that analysts say creates financial leverage for Moscow to prevent Kyiv from seeking to revive ties with the bloc.

Ukraine paid around $400 per 1,000 cubic meters to import an estimated 26 billion-27 billion cubic meters of natural gas from Russia, its main supplier, in 2013.

Based on reporting by Reuters, UNIAN, Interfax, and RFE/RL's Ukrainian Service