Russia Agrees to 33% Gas Price Cut for Ukraine

President Vladimir Putin said that Russia agreed to cut by 33% the price of gas supplies to Ukraine. The new agreed price is $268.5 per 1,000 cubic meters.

The lower price will take effect as of January 2014.

Putin said that the measure was temporary. He also explained that Russia is ready to use its $15 billion-worth National Welfare Fund to help stabilize Ukraine’s financial position. Moscow will invest funds from the sovereign wealth funds in Ukrainian government securities. 

“Considering the problems of the Ukrainian economy linked to the world financial crisis, and to support the budget of the Ukrainian government, the Russian government decided to place part of its reserves from the National Welfare Fund in Ukrainian state securities,” Putin said on Tuesday after the meeting with Ukrainian President Viktor Yanukovych.

According to a note released by the Kremlin, the parties also signed a package of bilateral documents on cooperation in shipbuilding and the aerospace industry.