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You're reading: STRATOR: Ukraine, Russia verge on new natural gas deal

A new natural gas agreement between Ukraine and Russia appears to be imminent, though it is not yet clear what concessions Kyiv is willing to grant Moscow in exchange for lower natural gas prices. Regardless of the magnitude of Ukraine’s concessions, any deal that lowers the price Ukraine pays Russia for natural gas will have implications for Kyiv’s relationships with the European Union and the International Monetary Fund as well as for Ukraine’s relationship with Russia.

Analysis

Several recent events indicate that Ukraine and Russia will soon conclude a new deal that will lower the prices Russia charges Ukraine for natural gas. Although pricing is an important issue for Ukraine, this deal will have implications in the political and economic areas of Ukraine’s relationships with Russia, the European Union and the International Monetary Fund (IMF).

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