Russia varies gas prices by factor of five

Published: Dec. 20, 2005 at 2:08 PM

MOSCOW, Dec. 20 (UPI) -- Russia will sell natural gas to politically compliant neighbor Belarus for $46.68 per million Btu next year but bill Ukraine about five times as much.

Since the so-called Orange Revolution led to the defeat of the Kremlin-sponsored presidential candidate in Ukraine, tensions between Kiev and Moscow have grown.

Now the Kremlin, through its Gazprom agency, says it will bill Ukraine $230 per million Btu for the same commodity that costs Belarus about a fifth as much, MosNews reported Tuesday.

Before the Kremlin's presidential candidate to run Ukraine lost the election, the country was billed about $50 per Btu and paying much of that cost by forgiving natural gas pipeline transportation fees on the commodity as its went from Russia through Ukraine into Europe.

Gazprom says it will no longer accept any form of barter and wants the full payment of the increased amount in cash.

Ukrainian Prime Minister Yuriy Yekhanurov said Tuesday that Ukraine could survive without Russian natural gas supplies if it focused on the development of energy saving technology.

© 2005 United Press International, Inc. All Rights Reserved.
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