YEREVAN, March 21. / ARKA /. An agreement, under which Russia granted Kiev a discount of U.S. $100 per 1,000 cubic meters of natural gas, must be denounced and Ukraine must pay Moscow $11 billion which it lost on the price reduction, Prime Minister Dmitry Medvedev told President Vladimir Putin on Friday, Prime reports.

“I think that it would be absolutely legal to raise the matter of demanding this money from Ukraine’s budget which could be done through the courts on the basis on the denounced treaty,” Medvedev said.

At the end of 2013, Russia offered Ukraine a discounted gas price of $268.5 per 1,000 cubic meters for 2014 compared with an average $400 Kiev paid in 2013. The reduced price is prolonged on a quarterly basis. From April 1, Ukraine will pay $380 per 1,000 cubic meters.

Medvedev said separately that Ukraine owes Russia $16 billion.

“I think that we cannot lose such money since our budget also has its own difficulties,” Medvedev said.

“The debt includes a $3 billion loan, which we provided when we bought Eurobonds under our previous agreement. The accumulated debt to Gazprom is about $2 billion,” he said. -0-