Ukraine to Pay $180 for Gas

Ukraine has agreed to raise payments for Russian gas by 38 percent next year, Gazprom said Tuesday.

Gazprom said the deal had been reached at a meeting with Ukrainian Energy Minister Yuriy Boiko and that the price of gas would rise to $179.50 per 1,000 cubic meters from $130 this year.

Gazprom has said it would pass on costs to Ukraine, which imports mainly cheaper Turkmen gas, after agreeing to raise payments for Turkmen gas from 2008. Under the deal signed last week, Gazprom would pay $130 per 1,000 cubic meters of the gas in the first half of 2008, up from $100 in 2007 and $150 in the second half of 2008. Ukraine's 2008 budget assumes a price of $160.