Russia Says Ready to Sell 25% Cheaper Gas to Ukraine: Energy Minister

Russia may resume gas supplies to Ukraine at a price which is 25% lower than the current one, Energy Minister Alexander Novak said at a briefing on the results of negotiations with the European Commission’s Vice President for Energy Union Maros Sefcovic, RIA reports.

“We are ready to ensure gas supplies to Ukraine, to resume deliveries that were discontinued in 2015. Gazprom could ensure a reduction in prices for Ukrainian consumers by 25% in comparison with the current price,” he said.

Novak also confirmed that Russia is ready to extend the gas transit contract with Ukraine under current conditions.

“Russia takes a constructive position on this issue and is ready to continue gas transit through Ukraine and ensure supplies to European consumers. We are ready to extend the contract under current conditions,” Novak said.

The last ministerial meeting in Russia-EU-Ukraine format on gas transit was held in Brussels on January 21 and the parties failed to reach understanding there on the issue of Ukrainian gas transit or mutual claims of the Russian gas holding Gazprom and Naftogaz of Ukraine. The decision was made after talks to proceed with consultations after completion of the electing cycle in Ukraine.

The European Commission wants Russia to provide guarantees of keeping the Ukrainian transit after the contract expires in December 2019. The Ukrainian budget receives up to 3 billion euro from the gas transit, according to the Commission’s assessments.