Ukraine has paid its 786 million dollar debt to Russian Gazprom Company and now insists on Russia to change the 2009 gas contract and lower the price for future imports.
Gazprom now charges Ukraine 485 dollars per 1 thousand cubic meters of gas which is the highest price in Europe. The debt payment gave Ukraine a little more time to negotiate. Russia has urged Ukraine to pay the whole $1.45 billion of gas debt. Moscow has even threatened gas cutoff. The European Union has interfered in the talks, since the final gas price would affect Europe to a large extent. But the possibility that both sides will reach a final gas price this week is quite low. As the dispute inflates, Gazprom has continued billing Kiev at the higher rate and says Ukraine is running up more debt at a rate of more than $1 billion per month. Meanwhile Kiev is looking after the model of Germany, Poland and Lithuania that have successfully arbitrated against Russia to secure cheaper gas prices in the past.