Putin warns Kiev against refusing gas price discount offer

Russian President Vladimir Putin has warned Ukraine against refusing a reduced gas price offer, amid a long-running dispute over the price of Russian gas deliveries.

Putin made the remarks on Wednesday, as the two countries were holding gas supply talks in the Belgian capital, Brussels.

The Russian president added that Kiev is leading the negotiations into a “dead end.”

Putin also said the final price for every 1,000 cubic meters of Russian natural gas is USD 385, which includes the discount.

The Russian president has ordered Prime Minister Dmitry Medvedev to decide future actions that Moscow should take after Ukrainian Prime Minister Arseniy Yatsenyuk rejected a discount of USD 100 on per 1,000 cubic meters of gas.

Medvedev has threatened Ukraine with pre-payments, if Kiev fails to clear its outstanding debts. According to Russia’s state-run energy giant, Gazprom, Ukraine’s total gas debt stands at USD 5.2 billion, with its last month’s consumption included.

Kiev has refused to pay for natural gas upfront as a protest to Russia’s decision in April to almost double former gas prices. Gazprom raised the price of gas for Ukrainian consumers to USD 485 per 1,000 cubic meters from USD 268 for the first quarter of 2014.

Ukraine says Kremlin increased the price after former president, Viktor Yanukovych, was ousted in February. Kiev calls the move politically motivated, but Russian authorities reject the claim.

Russia provides about half of Ukraine’s and 30 percent of Europe’s total gas demand with major pipelines in the Ukrainian territory.