Russia’s Gazprom Gives Ukraine Conditions for Keeping Gas Prices Low — Paper

MOSCOW, Russia -- Russia’s natural gas monopoly Gazprom is prepared to keep supplying Ukraine with low-priced gas in exchange for Ukrainian government’s agreement to create a consortium that would jointly manage the country’s gas pipeline system. The information was reported by the Kommersant Ukraine paper, which quoted an unnamed Gazprom official.

Gazprom pipeline
Earlier it was announced that beginning next year Gazprom plans to deliver natural gas to Ukraine for $180 per 1,000 cubic meters of gas, which is an average price for European consumers of Russian gas. This price is approximately four times higher than the present tariffs used in relations between Russia and Ukraine.

Ukraine’s new Prime Minister Yuri Yekhanurov already announced that he’s planning to make his first official visit to Russia to discuss gas delivery prices and Gazprom’s suggestion to re-create the gas pipeline management consortium. “We shall carry out the tasks given by the President to the government, in particular building good business relations with Russian Federation,” said the Ukrainian Prime Minister.

A source in Gazprom’s press service told the paper: “We are ready to re-think our proposal regarding the price of natural gas for 2006 in the course of our negotiations with Ukraine’s Prime Minister Yuri Yekhanurov. The price may be reconsidered in case Ukraine agrees to create a consortium to manage the country’s gas transportation system”.

Source: MosNews