MOSCOW, December 14 (RIA Novosti) - Russian Finance Minister Alexei Kudrin said Wednesday that increasing the price of Russian natural gas supplied to Ukraine was a justified measure. During the past five years, Gazprom has sold natural gas to Ukraine at $50-$60 per 1,000 cu m.
European gas prices have nearly doubled during this period, prompting Gazprom to propose a new "market price" of $160.
The countries failed to agree on this price.
Alexander Medvedev, deputy chairman of Russian energy giant Gazprom, said Wednesday that the new price will be $200-230 from January 1.
"I believe this is the right measure. It would have had to be taken sooner or later," Kudrin said.
Kudrin said the higher gas price would increase federal budget revenues due to Gazprom's larger tax contribution.
"The time when Russia pursued a policy of semi-subsidizing neighboring economies is gradually coming to an end. We must focus on our own interests," Kudrin said.
He said that Ukraine could pay the price and take extra energy-saving measures.
