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Economy / Ukraine

New Gas Dispute with Russia?

January 2008 | Ratings Update

Ukraine's Prime Minister Yulia Tymoshenko plans to renegotiate Ukraine's current gas deal with Russia. She intends to remove mediators in the gas trade and to raise gas transit rates - currently expected to rise by 6% this year - to US$9.32 per 1,000 cubic metres every 100 km (a five-fold increase) from the US$1.7 Ukraine has been charging Russia in the past. While Moscow is willing to leave out the mediators, the proposed increase in fees is seen as unrealistic and threatens to jeopardise Ukraine's relations with Russia. President Viktor Yushchenko objected to the proposal due to potentially less favourable

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