One person dies in fire at gunpowder factory in Russia's KazanWorld March 24, 21:47
Russia's 'Gentlefan' baton passed on to Krasnodar ahead of Cote d’Ivoire friendlySport March 24, 21:34
Brazil’s football star Carlos: Germany, Portugal to meet in 2017 Confederations Cup finalSport March 24, 20:45
Belarus to stamp on any conflict unleashed as in Ukraine, president saysWorld March 24, 19:41
Russia to stage best ever edition of FIFA Confederations Cup this year — Brazil’s CarlosSport March 24, 19:28
Jehovah’s Witnesses say they have no suspension orders from Justice Ministry yetSociety & Culture March 24, 19:10
Islamic State claims responsibility for attack on National Guard base in ChechnyaWorld March 24, 18:51
Eurovision organizers set to find solution for Russia's contestant to perfom in KievWorld March 24, 18:46
Russia’s Airborne Force wraps up large-scale drills in CrimeaMilitary & Defense March 24, 18:20
KIEV, February 3 (Itar-Tass) — Ukrainian President Viktor Yanukovich has said that the current price of Russian gas “in the long term threatens the national security of Ukraine.”
“It worsens the position of our producers in the international markets,” Yanukovich told the German newspaper Sueddeutsche Zeitung in an interview. “The gas contract concluded three years ago is extremely unfavorable for Ukraine.”
Yanukovich said that Ukraine’s gas pipeline system required upgrade. Experts estimate the costs at 5-7 million dollars, and the time required for this, at 5-7 years. For doing repairs on the pipelines he suggested creating a “trilateral consortium that would accommodate the interests of Russia and the EU member-states.”
In his opinion, Russia and the EU might own 33-percent stakes, and Ukraine, 34 percent. Yanukovich believes that this would make the system transparent enough. Specifically, he pointed out that the talks on leasing the pipeline system had never been conducted. Ukraine is fundamentally interested in retaining the status of a transit country, because the transit costs are a major source of budget revenues.
Earlier, the deputy chief of the oil and gas industry department at Ukraine’s Energy and Coal Ministry, Konstantin Borodin, said that due to the gas contracts the former prime minister, Yulia Timoshenko, signed in 2009 Ukraine this year, would overspend 6.4 billion dollars.
“The import of natural gas is expected at a level of 27 billion cubic meters at an average price of 416 dollars per 1,000 cubic meters. The expected value of imported gas will reach approximately 11.3 billion dollars. This is 6.4 billion dollars more than Ukraine would have paid at the 2008 price,” Borodin said.
He recalled that Ukraine’s overspending over the three years since the 2009 gas contracts have been in effect have exceeded 9.4 billion dollars. The 2010 accord on a discount off the gas price for Ukraine allowed for saving 7 billion dollars, and in 2012 the discount will be at approximately 2.7 billion dollars.
In the first quarter of this year the price of Russian gas is 416 dollars per 1,000 cubic meters, in the second and third quarters, 418 dollars, and in the fourth quarter, 413 dollars. The average annual price will be 415.7 dollars per 1,000 cubic meters. Ukraine’s 2012 budget is based on a gas price of 416 dollars per 1,000 cubic meters.