You're reading: Russia ready to provide gas discount for Ukraine in Q3, maintaining price at Q2 level

MOSCOW – Naftogaz Ukraine has requested a discount on gas supplies from Russia, which is ready to offer a discount of $40 per 1,000 cubic meters to maintain the price at the level of the second quarter, Prime Minister Dmitry Medvedev said.

Medvedev made the announcement at a meeting with Energy Minister Alexander Novak and Gazprom CEO Alexei Miller on June 29, an Interfax correspondent reported.

“Lately we have discussed the situation with gas supplies to Ukraine in sufficient detail. The topic is very complicated. During the entire winter period and up until the end of Q2 the price for gas for Ukraine was calculated with the discount, at their request, of $100 per 1,000 cubic meters. Tomorrow the validity of this discount will run out. A request to extend the validity of the discount has arrived from Ukraine,” he said.

“This for us is completely expected, with account of the difficult economic situation that prevails in Ukraine. It is very, very difficult. In essences the country is in a pre-default state, which has already been recognized by the Ukrainian government,” Medvedev said.

“We should realistically evaluate the current opportunities of the Ukrainian economy. And despite all the complications in our relations with Ukraine, we should reasonably make a compromise with our Ukrainian partners,” the Russian prime minister said.