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Ukraine cities to sue national gas company over price hikes

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Mayors in some Ukrainian cities intend to sue the national oil and gas company Naftogaz for gas price increases, a popular television channel said Tuesday.

KIEV, June 13 (RIA Novosti) - Mayors in some Ukrainian cities intend to sue the national oil and gas company Naftogaz for gas price increases, a popular television channel said Tuesday.

From May 1, 2006, electricity and gas prices for households were increased 25% in move that incensed some local leaders and sections of the population.

The mayors of the Association of Ukrainian Cities, which includes regional centers such as Kiev, Donetsk, Kharkiv, Lviv and other cities across the country, said they believed the price hike is unjustified and the government must compensate for consumers' losses under law.

Ukraine's Channel Five said the mayors had sent an appeal to parliament and the president, requesting them to convene a meeting of the National Security Council before June 21 to discuss the issue.

From July 1, the Ukrainian government intends to double gas prices.

Earlier, the country's 50 major thermal power stations filed a suit against Naftogaz to seek compensation for damage from the price hikes.

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