Russian Energy Ministry Scoffs at Ukraine's Expectation of Gas Subsidy

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According to Russian Energy Minister Ukraine is expecting Russia to give it a discount on gas without any grounds whatsoever, but Russia must first look out for itself and energy giant Gazprom.

Russian Minister of Energy Alexander Novak - Sputnik International
Russia Says $40 Gas Discount to Ukraine Market-Driven
VIENNA (Sputnik) Ukraine is expecting Russia to give it a discount on gas without any grounds whatsoever, but Russia must first look out for itself and energy giant Gazprom, Russian Energy Minister Alexander Novak said Wednesday.

“The discount on gas for Ukraine is in line with the prices that are in place in countries and territories around Ukraine. The Ukrainian side said today that it counted on a larger discount of around 30 percent,” Novak said on Rossiya-24 television after trilateral gas talks in Vienna.

Earlier in the week, Moscow offered Kiev the same gas prices for the third quarter of 2015 as it paid in the second quarter: $247.18 per 1,000 cubic meters that includes a discount of $40.

“In our opinion this is a completely groundless expectation because the price would be lower for Ukraine than in other countries and that is against market expectations. Overall, we believe that the proposed discounts should first and foremost be in the interests of the Russian state, in its budget interests, and in the interests of Gazprom, as well as in the ability to provide gas deliveries to Ukrainian consumers,” Novak said.

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