Austria: Ukraine suspends purchase of Russian gas, not satisfied with discount offered

Ukraine is not satisfied with the discount of $247 per 1000 cubic meters of gas, Russian Energy Minister Alexander Novak said in Vienna, Tuesday, adding that Ukraine had expected to get a discount of at least 30 percent to the regular market price. Ukraine has suspended its purchase of Russian gas as a result of the failed talks. Fresh talks are set to be held in September. Speaking to journalists following talks with his Ukrainian counterpart Volodymyr Demchyshyn and European Commission representative Maros Sefcovic, Novak justified Russia's decision with the current market economy and the fallen oil price compared to last year, when the current contract with Ukraine had been signed. "No correction is foreseen," Novak concluded, adding "this is an absolutely competitive market price." On June 29, Russian Prime Minister Dmitri Medvedev announced that Russia won't be able to maintain the previous discount of the summer package (up to $100 per 1,000 cubic meters) due to the situation in the world economy. The new price amounts 247 per 1000 cubic meters for the upcoming three months.