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Ukraine nixes Russia gas offer

| Wednesday, June 11, 2014, 6:39 p.m.

MOSCOW — Russia on Wednesday offered to restore the discounted gas price it granted Ukraine under the ousted pro-Russian president, but Ukraine demanded an even better deal and called for arbitration to settle the dispute.

Speaking in Moscow, Russian President Vladimir Putin said Russia was offering the discount as a “partnership deal.” Russia's energy minister, Alexander Novak, specified the offer as $385 per 1,000 cubic meters of gas.

“We believe that our offer is more than in a partnership spirit, aimed to support the Ukrainian economy at a rather difficult time,” Putin said in televised remarks. “But if our offers are rejected, it means we will enter another stage. This is not our choice. We do not want it.”

Russia and Ukraine have been locked for months in a dispute over the price of Russian gas supplies and Ukraine's debt for previous deliveries. Moscow has threatened to turn off the tap if Ukraine fails to settle the multibillion-dollar debt but has repeatedly pushed back the deadline because Ukraine paid off part of the sum.

European Union-brokered talks between the two countries in Brussels on Wednesday failed to reach a compromise over the price.

The bruising gas dispute unfolds amid continuing fighting in eastern Ukraine, where government forces have battled pro-Russian rebels for two months. The fighters have pushed for joining Russia.

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