23:33 GMT02 December 2020
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    Russia considers unreasonable to offer Ukraine a gas discount of more than $40 per 1,000 cubic meters.

    VIENNA (Sputnik) — Russia considers unreasonable to offer Ukraine a gas discount of more than $40 per 1,000 cubic meters as the price as a result would drop lower than current global gas prices, Energy Minister Alexander Novak said Tuesday.

    "The current discount is smaller than before taking into account falling global oil prices which also determine the price of gas," Novak said following trilateral Russia-EU-Ukraine gas talks in Vienna.

    "The price dropped compared with last year, and by more than $200 compared with the original contractual price, therefore we do not see the need to offer a discount of over $40 as it would make the price lower than average market prices," Novak said.

    "It is an absolutely competitive market price of $247," the minister stressed.

    Novak said added that Ukraine's decision to suspend purchases of Russian gas is politicized as it is not justified by economic reasons.

    Ukraine's Naftogaz has announced suspension of Russian gas purchases after trilateral Russia-EU-Ukraine gas talks in Vienna failed to agree the price for the third quarter of 2015.

    "The Ukrainian side has no reasons to suspend the gas purchases because the offered price, counting the discount, are absolutely competitive," Novak said.

    "In my opinion, these are political decisions because there are no economic reasons behind them," Novak stressed.

    The minister added that Russia will continue supplying gas to self-proclaimed Donetsk and Lugansk people's republics in eastern Ukraine despite Kiev's suspension.

    Tuesday’s trilateral talks on Russian gas supplies to Ukraine convened in Austria a day before the second quarter deliveries under a $100 per 1,000 cubic meters discount were due to expire.

    According to Ukrainian Energy Minister Volodymyr Demchyshyn, Kiev is not satisfied with Russia's recent gas price offer of $247 per 1,000 cubic meters, representing a $40 discount to the contractual price, and will insist on extending of a $100 discount.

    Last week, President Vladimir Putin said Russia can no longer provide similarly generous gas discounts to Ukraine due to the falling global oil prices.


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