Russia Props Up a Controversial Figure in Ukraine's Energy Industry

With a key decision on Ukraine's orientation toward Europe approaching, the Russian government continues to apply pressure on Kiev. Unnamed sources within Gazprom said Oct. 9 that the Russian energy giant would supply natural gas at a discounted rate to Ostchem Holding, a firm run by influential Ukrainian oligarch Dmitri Firtash. Under the deal, Ostchem would purchase 5 billion cubic meters of natural gas for storage purposes, discounted at 30-36 percent, or to around $260 per thousand cubic meters.

Key to the announcement is the exclusion of Ukrainian state energy firm Naftogaz, which has been embroiled in a yearslong dispute with Gazprom over energy supplies and pricing. Neither Gazprom nor Ostchem has confirmed the deal, but if true, it would give a significant boost to the controversial Firtash, who has previously challenged the Ukrainian government in favor of Russian interests.