By Economy Watch

Russia’s state-owned gas producer Gazprom on Thursday announced another price hike for its sales to Ukraine, the second increase in this week alone, reported Reuters.

The latest increase means that Ukraine will now have to pay $485 per 1,000 cubic metres of natural gas – up from $268.5 per cubic metres just last week. This is more than the average price paid by consumers in the European Union, which Russia has justified by claiming to have scrapped two discounts after Ukrainian protesters toppled pro-Moscow President Viktor Yanukovich.

Ukraine relies on Gazprom for half its gas, while carrying about 15 percent of Europe’s demand through its pipelines from Russia, making it a linchpin in the continent’s energy security.

Russia had been giving it discounts on gas as long as the government was willing to have close ties with Moscow. Now that the new government has signed a partnership with the European Union instead, those favours are being pulled back.

New Ukrainian Prime Minister Arseny Yatseniuk criticised Russia’s latest move as another political manoeuvre, and warned that he expects Russia to add further pressure to his government by limiting future gas supplies.

"There is no reason why Russia would raise the gas price for Ukraine ... other than one - politics," Yatseniuk told Reuters. "We expect Russia to go further in terms of pressure on the gas front, including limiting gas supplies to Ukraine."

Ordinary Ukrainians should expect a 73 percent rise in their gas bills spread over the next few years, government officials said earlier this week.

According to Ukraine’s Energy Minister Yuri Prodan, as cited by Bloomberg, Ukraine, backed by the EU and the U.S., is already seeking alternative gas sources to cut dependence on Russia.

But these alternatives will not be ready in time, and Ukraine may have to add another $2 billion to its debt to Russia in order to pay for April’s and last quarter’s gas fees.