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Russian Gas Giant Rejects Gradual Price Rise of Gas to Ukraine

Posted on: Wednesday, 14 December 2005, 09:00 CST

Russian gas giant rejects gradual price rise of gas to Ukraine

MOSCOW, Dec. 13 (Xinhua) -- Russian natural gas giant Gazprom on Tuesday rejected Ukraine's proposal of gradually raising prices of gas deliveries to Ukraine to market levels.

"Gazprom deems unacceptable the gradual increase of prices for gas delivered to Ukraine and views such a proposal as an attempt to drag out the negotiating process," Gazprom press secretary Sergei Kupriyanov told the Interfax news agency.

Gazprom's rejection came after Ukrainian President Viktor Yushchenko proposed a gradual transitional period before Ukraine pays exclusively market prices.

"This proposal does not answer the questions as to who, when and from what sources would Gazprom be compensated for the lost revenue during this period. This proposal can be discussed only after answers to these questions are given," Kupriyanov said.

Russia is a key gas supplier to Ukraine and most of its gas exports to Europe pass through Ukrainian territory.

Ukraine is currently buying Russian gas at a discounted price of 50 US dollars per 1,000 cubic meters, but Gazprom has demanded the price be raised to 160 dollars starting next year.

So far, the two sides have failed to cut a deal. Last month, the gas row forced Russian Prime Minister Mikhail Fradkov to postpone a scheduled visit to Ukraine.

Source: Xinhua News Agency - CEIS

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