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Kiev Proposes Two Rates for Russian Gas: $300 Low Season-$380 High Season

© Sputnik / Iwan Rudnew / Go to the photo bankYatsenyuk said that it does not need a discount on gas, but would not pay Russia $500 per 1,000 cubic meters.
Yatsenyuk said that it does not need a discount on gas, but would not pay Russia $500 per 1,000 cubic meters. - Sputnik International
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Ukraine has offered Moscow two variants on gas pricing that would be set at $300 per 1,000 cubic meters during the low season and $380 during the winter season, or tie the gas prices to the spot market in Europe, Ukrainian Prime Minister Arseniy Yatsenyuk said Wednesday.

Updated on 03:55 p.m. Moscow Time

KIEV, September 3 (RIA Novosti) – Ukraine has offered Moscow two variants on gas pricing that would be set at $300 per 1,000 cubic meters during the low season and $380 during the winter season, or tie the gas prices to the spot market in Europe, Ukrainian Prime Minister Arseniy Yatsenyuk said Wednesday.

“We suggested our approach, which isn’t Ukrainian, but exclusively an economic European one: during the low season, when it’s summer, we will pay $300. That’s the market price. During the high season, in winter, we will pay $380 per 1,000 cubic meters. That makes an average price of $340,” Yatsenyuk said during a government session.

“If that option doesn’t work, we will offer another. Europe has a spot market. By subtracting the transit costs we are ready to tie [the price] to the spot market, to the factual quasi-gas market and pay according to the market price,” Yatsenyuk said.

Yatsenyuk said that it does not need a discount on gas, but would not pay Russia $500 per 1,000 cubic meters.

Three-party consultations between Russia, Ukraine and the European Union on gas issues, have been ongoing since April, but have yet to yield any significant results.

Russia offered Ukraine a $100 discount on the price for each 1,000 cubic meters, bringing the total price down to $385 per 1,000 cubic meters of gas, but Ukraine refused to agree on a deal.

On June 16, after several unsuccessful rounds of talks, Russian gas company Gazprom was forced to implement a prepayment scheme for gas supplies to Ukraine over its accumulated debt.

As of today, Kiev’s gas debt to Russia is estimated to be more than $5.3 billion.

Ukraine is a transit country for Russian gas. Around half of Russian gas exported in 2013 crossed Ukraine, which amounts to approximately 15 percent of European consumption, according to the International Energy Agency.

Over the last few years, Moscow has repeatedly accused Kiev of stealing Russian gas bound for Europe.

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