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Kiev files lawsuit against Gazprom

Russian gas monopoly has 30 days to respond to Ukraine's challenge.
By Daniel J. Graeber   |   April 29, 2014 at 9:34 AM   |   Comments

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KIEV, Ukraine, April 29 (UPI) -- The Ukrainian government started legal proceedings against Russian energy company Gazprom, which has 30 days to respond to the suit, the prime minister said.

Ukrainian Prime Minister Arseniy Yatsenyuk told Cabinet leaders his government sent a pre-arbitration note to Russian energy company Gazprom.

"We are insisting that the price set at the beginning of this year is market-oriented and that this price be extended," he said Monday. "In addition, the government of Ukraine proposes a meeting with representatives of Russian company Gazprom in London to discuss pre-arbitration claims."

Ukraine lost out on a discount for natural gas when Gazprom earlier this year complained about overdue bills. Last week, Gazprom sent Ukraine an $11 billion bill for not taking enough gas in 2013 under a take-or-pay contract.

Gazprom sends the bulk of its natural gas supplies for European consumers through the Soviet-era gas transit network in Ukraine.

The Kremlin has warned European leaders the region's energy security is at risk because of Ukraine's debts. Russia leaders this week summoned their Ukrainian and European counterparts to the negotiating table to discuss the ongoing row.

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