The price Ukraine pays for Russian gas will rise 79 per cent from 1 April to $480 (£290) per 1,000 cubic metres, according to Ukrainian prime minister Arseny Yatseniuk.
In a speech to the country’s parliament, the premier said the upped price will push the country even closer towards economic tragedy: "Ukraine is on the edge of economic and financial bankruptcy," he said.
On Friday, Russian newspaper Kommersant said that a revision of Moscow and Kiev’s agreement on the Black Sea fleet could see Ukraine lose its lower price. $480 would be the highest price tag paid by any of Gazprom’s clients in Europe, according to the paper.
Yatseniuk said inflation this year is set to be between 12 and 14 per cent and, unless laws are passed that boost the measures announced by the International Monetary Fund (IMF) to help stabilise the economy, GDP could plummet 10 per cent over this year, leading to Ukraine defaulting.