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Ukraine to pay Russia new price for November gas – prime minister

November 16, 2011, 20:53 UTC+3
On Tuesday, Azarov said that in case of agreements with Russia on the revision of gas prices Ukraine would be saving 500 million per month
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KIEV, November 16 (Itar-Tass) —— Ukrainian Prime Minister Nikolai Azarov believes that Ukraine will be able to pay Russia a new price for the gas supplied in November. He shared his expectations at a meeting of the economic press-club. A video report of the event is available on his page in the social network Facebook.

"I think that in November we shall be through with the long-going talks. The way they proceed as it is, I would say that the finish line is near, because we are no longer discussing such things as, for example, prices and conditions. We are already through with this," Azarov said.

"For November gas, I think, we will pay a new price and under new terms," · said the prime minister. At the same time Azarov said that an agreement had been reached to pay for gas in rubles.

On Tuesday, Azarov said that in case of agreements with Russia on the revision of gas prices Ukraine would be saving 500 million per month.

"Once we agree on an acceptable price of gas, we shall obtain at once, roughly speaking, an extra 500 million a month, and 6 billion in the whole year," said the prime minister. Azarov said that it was one of the ways to stabilize the balance of payments.

Gazprom and Naftogaz Ukrainy on January 19, 2009 signed two contracts: on gas sale for 2009 to 2019, and on the scope and terms of natural gas transit through Ukraine for 2009 to 2019. The price of gas is to be set quarterly. The price of imported natural gas for Ukraine in the first quarter of 2011 amounted to about 264 dollars per thousand cubic meters, in the second - 295.6 dollars, in the third quarter - 354 dollars, in the fourth quarter - about 400 dollars.

Ukraine is pressing for a revision of gas the contracts with Russia. It argues that the price of gas is too high, and the transit fee, on the contrary, too low.

According to sources in the government of Ukraine, Kiev and Moscow first agreed on a new price for Russian gas, which will amount to 220-230 dollars per thousand cubic meters, and according to sources in parliament – 270 dollars.

Earlier on Wednesday, Dmitry Peskov, the spokesman for Russian Prime Minister Vladimir Putin, denied reports of final agreements on gas with Ukraine.

"When we have agreed, the contract will be signed. Prior to the signing we cannot say anything," he remarked.

Gazprom, too, has refused to give any comments on this matter until the end of the talks.

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