Ukrainian national gas company Naftogaz has paid the first tranche of debt repayment (US$1.45bn) required by Gazprom (Russia) to resume Russian gas supplies to Ukraine, as agreed in late October 2014. Ukraine will have to pay US$3.1bn in two tranches (first one just disbursed) by the end of the year 2014, corresponding to debt for previous supplies by Gazprom. Ukraine will have to pay another US$1.5bn under the US$4.6bn package agreed with the European Union and the IMF and will have to purchase extra volumes of gas on prepayment terms. The price of Russia gas sold to Ukraine was set at US$378/1,000 m3 in November-December 2014.
In February 2014, Russia doubled gas prices to US$485/1000 m3. Ukraine wanted to stick to the price of US$268.5/1,000 m3 that Gazprom had offered earlier, but agreed to pay the alternative price of US$326/1,000 m3 proposed by the European Union. Russia offered to remove an export duty of US$100/1,000 m3, reducing the price to US$385/1,000 m3, which was refused by Kiev. Negotiation failure led to the interruption of gas supply in June 2014.