The head of Gazprom warned that the prices of gas in the Ukraine that is imported from Russia might more than double in the upcoming year.
The prices on Ukraine could be raised to over $400 per each 1,000 cubic meters in the year of 2009. That would be an increase of over $220 from this year. If this happens, which is what is expected then that means that Russia will be paying more for the same gas that it is buying from Central Asia. This increase in the price of gas could cause an issue.
Gazprom is one of the prime companies that delivers to over a quarter of the gas suppliers in Europe and mostly throughout the Ukraine. There have been disruptions previously when there have been disputes over the pricing of the supplies sent to Europe.
Gazprom has said that the deals with the Central Asian suppliers are still not settled and they will be reviewed. Both parties have yet to come to any agreements on a new contract.
So what does this mean for the Ukraine and its gas prices? As of right now it means that is likely to be an increase in the upcoming year but what the amount of the increase will be is still not known. We will have to wait and see what those in charge decide once they have all reached an agreement.
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