Azarov to push for new terms of gas deal with Russia

In Q1, the Russian gas was bought by Ukraine at $330 per 1,000 cu m. Each quarter, the price goes up by $25, so it will amount to $390 in Q4. The formula had been used by the Russians since the 2009 gas deal signed with the Tymoshenko cabinet, Azarov explained.

“If the formula is not changed, it will have a devastating effect on Ukraine’s economy and populace,” Azarov warned.

The Kharkiv deal on extending the lease of the Sevastopol base by Russia cut the price of gas by $100 which let us make both ends meet economically.

“We will aim to revise the deal which is extremely unfavorable for Ukraine and will persistently persuade our Russian partners to agree to our proposals,” Premier Azarov said.