I noted that increasing the price of gas supplies to domestic consumers could help strengthen Ukraine’s hand in those negotiations.
At present, some consumers of gas in Ukraine (mostly industrial users) pay market prices. Other users pay a lower, subsidised price. This has a number of effects:
(i) By lowering prices for some consumers, energy efficiency and lower consumption of gas are discouraged. So is exploration and exploitation of Ukraine’s own gas reserves. Both elements weaken Ukraine’s hand in negotiating with other countries about gas supplies;