Russia withdraws Ukrainian gas discount, Kiev must repay $11 bln

MOSCOW, Mar 21 (PRIME) -- An agreement, under which Russia granted Kiev a discount of U.S. $100 per 1,000 cubic meters of natural gas, must be denounced and Ukraine pay Moscow $11 billion which it lost on the price reduction, Prime Minister Dmitry Medvedev told President Vladimir Putin on Friday.

“I think that it would be absolutely legal to raise the matter of demanding this money from Ukraine’s budget which could be done through the courts on the basis on the denounced treaty,” Medvedev said.

At the end of 2013, Russia offered Ukraine a discounted gas price of $268.5 per 1,000 cubic meters for 2014 compared with an average $400 Kiev paid in 2013. The reduced price is prolonged on a quarterly basis. From April 1, Ukraine will pay $380 per 1,000 cubic meters.

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