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Ukraine may switch to paying for Russian gas in rubles

      RBC, 16.02.2011, Kiev 17:24:13.Ukraine and Russia are discussing a transition to payments for part of Russian natural gas supplies in Russian rubles from U.S. dollars, Yevgeny Bakulin, CEO of Ukrainian oil and gas company Naftogaz of Ukraine, told reporters today. According to him, the proposal was spearheaded by Russia.

      Meanwhile, the price of Russian gas for Ukraine will increase to $280 per 1,000 cubic meters in the second quarter of 2011from $264 per 1,000 cubic meters in the first quarter due to higher prices for petroleum products, Bakulin said. A $100 discount on the gas price enables Ukraine to "upgrade industry and solve many social problems without sharply raising prices," he said. Ukraine will increase its fee for Russian gas transit via its territory in light of the gas price hike. Ukraine imported 36.473 billion cubic meters (bcm) of Russian gas in 2010.

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