October 3, 2008

Naftogaz Ukrainy, Gazprom to Soon Sign Gas Contracts – Tymoshenko

KYIV. Oct 3 (Interfax) - Naftogaz Ukrainy and Gazprom (RTS: GAZP) will in the next few weeks sign long-term contracts on the delivery of natural gas to and its transit through Ukraine, Ukrainian Prime Minister Yulia Tymoshenko told a news conference on Friday.

"We instructed economic agents - Naftogaz Ukrainy and Gazprom - to sign contracts on the delivery and transit of natural gas in the next few weeks with regard to an intergovernmental memorandum signed on Thursday," Tymoshenko said.

The contracts will be signed for at least ten years, the PM said.

Ukraine and Russia agreed on the gradual switch to European pricing for gas and its transit services, she said.

Gas prices for Ukraine will grow together with the growth of tariffs for the transit of Russian gas through the country, the PM said.

Tymoshenko did not forecast what the gas price for Ukraine could be in 2009, noting that it will become clearer after Gazprom agrees on the terms of buying gas from Central Asian producers.

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