White House criticizes Russia's increase in gas price for Ukraine [View all]

[dipsydoodle]

Source: Reuters

(Reuters) - The White House objected to Russia's increase in natural gas prices for Ukraine on Thursday and said markets should determine prices.

White House spokesman Jay Carney spoke after Russian natural gas producer Gazprom announced it would virtually double the gas price for Urkraine to $485 per 1,000cubic meters this month, which Ukraine said was politically motivated.

"That kind of action taken coercively against Ukraine is something we oppose," Carney told reporters.

"We believe that markets should determine energy prices," he said. (Reporting By Steve Holland; Editing by Sandra Maler)

Read more: http://uk.reuters.com/article/2014/04/03/ukraine-crisis-obama-idUKL1N0MV1CI20140403

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The reduced price which Ukraine had been paying was conditional on a c. $2 billion running debt for gas supplied being settled. Ukraine didn't settle the debt - maybe the US should've paid it for them.

The gas price was actually restored to $385 per 1,000cubic meters which is ore or less what the rest of Europe pays. The additional balance of $100 was due to removal of a discount related to the Crimea naval base which was funded by Russia : not Gazprom.

See also :

Poroshenko: Naftogaz-Gazprom contract should be reviewed by Stockholm arbitration court.

Petro Poroshenko, one of the candidates for the presidency in Ukraine, says that it's necessary to appeal to the Arbitration Institute of the Stockholm Chamber of Commerce so that a gas supply contract concluded between NJSC Naftogaz Ukrainy and Russia's OAO Gazprom in 2009 be reviewed if the Russian side doesn't enter negotiations to revise the prices sealed in the contract.

http://www.kyivpost.com/content/ukraine/poroshenko-naftogaz-gazprom-contract-should-be-reviewed-by-stockholm-arbitration-court-342015.html

2009 contract price referred to was the one agreed by Yulia Tymoshenko and part of the reason she was subsequently imprisoned.