Moscow lures Ukraine with cheap gas

Article reports that Russia tried to trump free trade talks between Ukraine and the European Union by offering its southern neighbour on the 7 April 2011 an $8bn annual discount on natural gas prices if it instead joins Russia, Belarus and Kazakhstan in a free-trade and customs union.

Ukraine is keen to sign free-trade deals both with Europe and Russia. But Moscow is pushing hard for Kiev to also join a customs union, which would be incompatible with an EU free-trade agreement.

EurActiv, 8.4.11: Russia plays gas card to keep Ukraine in its club http://www.euractiv.com/en/enlargement/russia-plays-gas-card-keep-ukraine-club-news-503910

Deutsche Welle, 14.6.11: Pipeline control dominates Russian-Ukrainian relations http://www.dw-world.de/dw/article/0,,15151448,00.html

ESO: Background information: Ukraine wants free trade deal with EU, Russia http://www.europeansources.info/record/ukraine-wants-free-trade-deal-with-eu-russia/

EU: EEAS: Ukraine http://eeas.europa.eu/ukraine/index_en.htm

European Commission: DG Trade: Bilateral relations: Ukraine http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/ukraine/

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