No payments, no discount

The attraction of unprecedented generosity is over in Ukraine. Discounts and special prices for natural gas from Russia are not advantages of the Ukrainian buyers anymore. Starting April, the Russian gas will be sold to the neighbor for its regular price. These initiative of Gazprom has been supported by the government. At the meeting with the company's CEO Alexei Miller, Prime Minister Dmitry Medvedev called this decision “justified” and “corresponding to the present situation”. Officially, Gazprom has the right to cancel the preferential terms for Ukraine as it hasn't yet made full payment for February gas deliveries. Now, Ukraine's debt to Gazprom stood at $1.5 billion. With the current instability in this country, there is no guarantee it is capable of settlement of its existing debts and future payments. There is no way to cooperate under such conditions. Russia clearly understands that. Dmitry Medvedev said, “The actions you take on cancellation of cheap supplies are absolutely lawful.” Last December, Ukraine was provided with a significant discount: Naftagaz paid $268.5 a cubic meter against a regular price of $400. Russia made these concessions after the Ukrainian authorities had taken the responsibility to pay off the 2013 debt before January 25, 2014. However, it did not carry out the obligations, even with Russia's financial aid of $3 billion. After a month the agreement was signed, Kiev asked Moscow to postpone the previous year's payments and the money its owes for supplies delivered in early 2014. The political crisis in the country has a negative impact on the relationships with the Kremlin that has remained oblivious to many aspects before. Now it has become impossible. “We are good with Ukraine selling gas to it, but they must pay off their bills,” Sergey Kupriyanov highlighted.