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You're reading: Tymoshenko warns president on Russia deal
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Ukraine has sought to negotiate cheaper Russian gas supplies for more than a year and government and industry sources say Moscow insists on getting a stake in Ukrainian pipelines that ship Russian gas to Europe.

Kyiv has so far refused to do this but Yanukovych’s government is in a difficult position as the price of gas is rising under the current agreement, stretching state finances at a time of global economic downturn.

Ukraine subsidises gas and heating supplies to households so dropping the subsidies would mean political suicide for Yanukovich’s Party of the Regions as it prepares for a parliamentary election in October 2012.

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