Ukraine's parliament on Thursday approved the 2012 budget based on a relatively high price of imported Russian gas after the government failed to secure a discount from Moscow that would have improved state finances.
The government had delayed the submission of budget to the legislature hoping to strike a new deal with Russian gas giant Gazprom but Moscow has said none would be made this year.
Ukraine depends heavily on Russian gas supplies and the 2012 budget is based on the average gas price of $416 per thousand cubic metres (tcm).
The price is currently around $400 per thousand cubic metres. Ukrainian President Viktor Yanukovich said this week he considered $250 per tcm the highest acceptable price.
The government subsidises gas supplies for households and heating companies and high gas prices increase budget deficit. Gas price is also a significant cost factor for Ukrainian manufacturers.
