The Russian government yesterday announced that a special pricing deal signed between the Ukrainian government and the Russian oil and natural gas company Gazprom would not be renewed. According to the Russian government, Ukraine currently owes more than $4 billion for previous shipments. But given deteriorating relations between the two countries and the desire of the Ukrainian government to develop closer ties with the European Union, Russia appears increasingly unwilling to offer favorable pricing deals to Ukraine.
This video, produced by the Russian news station RT, outlines the Russian position on the question.
What do you think? Is the Russian government justified in its decision to rescind the favorable pricing deal previously negotiated with Ukraine? If the goal of the Russian government is to punish Ukraine for looking to develop closer ties with Europe, will this move be successful? Can Russia use its oil and natural gas wealth as a foreign policy tool?