Ukraine Prepares for Gas Cut as EU Price Offer Rejected
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Ukrainian Prime Minister Arseniy Yatsenyuk ordered the nation’s authorities to prepare for a cut-off of natural gas flows from OAO Gazprom as Russia rejected the latest price proposal before a deadline expires next week.
Russia turned down proposals from Ukraine backed by the European Union, according to a statement on the Ukrainian government’s website. The EU suggested an interim price of $326 per 1,000 cubic meters ($8.25 a million British thermal units), which Ukraine would accept, Andriy Kobolyev, chief executive officer of national energy company NAK Naftogaz Ukrainy, told reporters in Kiev today. Gazprom’s final price offer for Ukraine is $385, the Moscow-based company said in a statement today.