Russia Extends Gas Discount for Ukraine by Three Months

Considering Ukraine's ailing economy, Russia decided to help the neighboring country and extended the discount for gas for another three months, despite the burden for Russia's own economy.

NOVO-OGARYOVO (Sputnik) — The Russian government will extend the discount for Russian gas supplied to Ukraine for another three months, starting April 1, Prime Minister Dmitry Medvedev said on Tuesday.

"The Ukrainian economy is in a very difficult situation…so, despite the burden to the Russian budget…we believe it possible to satisfy the request by Gazprom and the Ukrainian side," Medvedev said at a meeting with Russian President Vladimir Putin.

Meanwhile, Ukrainian Minister of Energy Volodymyr Demchyshyn said extended deliveries of Russian gas to Ukraine were expected to cost $248 per 1,000 cubic meters.

On Monday, Russia's Energy giant Gazprom requested the Russian government to consider extending the existing discount for gas deliveries to Ukraine for another three months.

Meanwhile President Putin said that further gas discounts for Ukraine for July-September will be discussed in three months taking into account global oil prices.

Kiev is currently paying $329 per 1,000 cubic meters under the "winter package" deal, which was mediated by the European Union and signed by Gazprom and Ukraine's Naftogaz in 2014. The deal, which stipulates a $100 discount per 1,000 cubic meters of Russian gas, expires on March 31.