Russia's Gazprom cancels Ukraine's discount, proposes $2-3 bn loan

4th March 2014, Comments 0 comments

Russian energy giant Gazprom said Tuesday it would end Ukraine's gas discount from April but proposed a loan of up to $3 billion to Kiev to cover its debt.

"Gazprom took a decision not to extend the discount from the beginning of next month," Gazprom chief Alexei Miller said, ITAR-TASS news agency reported.

He added that the company would back "offering a Ukraine a loan worth $2 to $3 billion to cover its debt for last year and pay for current supplies".

On Saturday, Gazprom said Ukraine owes it a debt of $1.55 billion for unpaid gas.

Moscow has been frequently accused of using its gas exporting monopoly as a diplomatic weapon aimed at influencing decisions of ex-Soviet nations that rely on Russian gas and contemplate closer relations with the West.

© 2014 AFP

0 Comments To This Article