MOSCOW, May 20 (RIA Novosti) - Russia is ready to discuss a discount on gas supplies to Ukraine, but not a change in the pricing formula stipulated in the existing contract, Russian Energy Minister Alexander Novak said Monday.
"We have not discussed the specific price of gas as it is the subject of different negotiations, and there are appropriate legal framework conditions, as to how it happens," Novak said, referring to gas talks with Ukraine during an interview with the Russia 24 TV channel.
"We only talked about the conditions under which Russia is ready to consider the question of providing discounts," he added.
"Nobody is going to change the pricing formula stipulated by the contract. We can only speak of the possibility of providing a discount," the minister said.
Two major roadblocks stand in the way of such discussions: the question of Ukraine's ability to pay in the future and Kiev's outstanding gas debt, which stands at over $3.5 billion.
Following a regime change in Ukraine in late February, Russia's Gazprom made a decision to cancel two discounts earlier granted to the country, raising the price of Russian gas for Ukraine from $268.50 to $485 per thousand cubic meters.
Acting Ukrainian Prime Minister Arseny Yatsenyuk announced that Kiev was ready to pay off its debt if Russia agreed to sell gas at the old price of $268 per thousand cubic meters.
Ukraine's debt for Russian gas deliveries has reached $3.5 billion as of the end of April. Russia has decided to switch to a prepayment scheme due to the outstanding bills, in full accordance with the countries' contract. Gazprom has prepared an advance bill for Ukraine's Naftogaz for June deliveries and in the case of non-payment Russia could suspend gas supplies to Ukraine starting June 3.
The West earlier accused Moscow of using Ukraine's dependence on Russian natural resources to influence the country's internal affairs. Moscow responded by saying that the EU and the US are welcome to pay Kiev's debts and support its economy, as Russia did for almost two decades.
