With winter approaching, Gazprom and Ukraine are again locked in a dispute over the price of natural gas
With winter approaching, Gazprom, the Russian state-controlled natural gas monopoly, and Ukraine are again locked in a dispute over the price of natural gas.
Gazprom said Wednesday that if Ukraine did not pay a $2.4 billion debt by Jan. 1, it might more than double the price of natural gas, which would deal a blow to Ukraine’s economy.
The company said it would try to avoid cutting off gas to Ukraine, which it did briefly in 2006, disrupting supplies in Europe.
Ukraine now pays $179.50 for 1,000 cubic meters of gas, far below the market price of over $400, Gazprom said.
Oleg Dubina, the chief executive of the Ukraine state energy company, said it was struggling to find the money to make payment.
The $2.4 billion that Gazprom has demanded includes penalties for late payment.
Author:
Jo Amey
