Sunday, April 5, 2015

Ukraine agrees cheaper short-term gas deal with Russia

Despite Russian's threat to cutoff Ukraine energy supplies, Naftogaz - Ukraine's state gas company, did secure a short term deal with Gazprom - a Russian gas company. In this agreement, Ukraine will pay $248 thousands per thousand cubic metres for the next three month, which is a lot cheaper than the previous price at $329 thousands per thousand cubic metres that they paid for the first quarter of 2015. Long-term solution has still not been reached and Ukraine is still required to prepay the due to Russia.

Amidst the Ukraine crisis ongoing, this might be one of a small yet needed positive news that both countries want, especially Ukraine. However if anything it's not any indication of improvement over the overall situation in Ukraine, let alone the economics situation in both countries.


http://www.bbc.com/news/business-32157899

No comments: