KIEV, Dec. 15 – A failure to reach an agreement on lower natural gas prices between Ukraine and Russia will mostly hurt the people, not the government, Volodymyr Lytvyn, parliamwntary speaker, said Thursday.

The comment comes days after Cazprom CEO Alexei Miller said the agreement will not be reached this year as everyone had previously expected. This may force Ukraine to change the 2012 budget towards cutting social spending.

“This will make life more difficult for the people,” Lytvyn said in a statement. “The problem is not the price of gas, but how difficult the budget will be for the people.”

Higher gas prices and lower social spending in 2012 will most likely hurt popularity of the ruling Regions Party ahead of the parliamentary elections due in October 2012, analysts said.