Ukraine to pay double for Russian gas in 2009

Ukraine will pay “significantly” more for natural gas it imports from Russia from 2009, Russian President Dmitry Medvedev told Ukrainian counterpart Viktor Yuschenko at the informal Commonwealth of Independent States summit in St Petersburg last week.

Russian Foreign Minister Sergey Lavrov said the price would be “almost double” the amount Ukraine currently pays, USD 179.50 per hundred cubic meters.

The foreign minister said the price rise was due to Russia having to pay European prices to import Central Asian gas from next year onwards.

“Gas from Central Asia forms a considerable part of the gas balance for Ukraine. The president of Russia reminded President Yushchenko that this will happen from January 1. The price for gas for Ukraine will significantly increase,” Bloomberg quoted Lavrov as saying.

A representative from Ukrainian gas company Naftogaz Ukrainy said the Russian move is “more political than economic” according to Bloomberg.

“The statement arises from the recent worsening of relations between Ukraine and Russia,” he added.

However, AFP quoted Lavrov as defending the decision as being made “for objective reasons.”