Ukraine hit with spike in Russian gas prices

BY Justin Scuiletti  April 1, 2014 at 11:08 AM EST

The price of gas for Ukraine jumped more than 40 percent Tuesday as Russian natural gas provider Gazprom announced an increase from a deal made with the country in December.

Citing Ukraine’s gas debt of $1.7 billion as justification, Gazprom said that Ukraine will now pay $385.50 per 1,000 cubic meters of gasoline — the equivalent of more than 264,000 gallons — instead of an agreed December price discount of $268.50.

“The discount will no longer apply,” Gazprom chief executive and vice-chairman Alexei Miller said. “This is due to the inability of the Ukrainian side to pay for debts from 2013 and realize full payments for current deliveries.”

The original deal was part of an economic package offered to Ukraine by Russia, which sparked protests in Kiev that led to the ousting of then-president Viktor Yanukovych. Before December’s deal, Ukraine was paying around $400 for the same amount.