Black Sea fleet key to gas deal

Russian navy sailors look out from aboard the Russian flagship Peter the Great, Monday, August 21, 2000, in the Barents Sea, as the rescue operation for the sunken nuclear submarine Kursk continues. Russia's navy announced Monday that all 118 crew on the Kursk were dead. (AP Photo/Pool)

Setting sail: Russia's Black Sea fleet gets a further 25 years to its lease in Sevastopol from Ukraine in exchange for a gas price discount

related stories

Anthea Pitt

 21 April 2010 14:26 GMT

Russia today agreed to cut the price of its huge natural gas supplies to Ukraine in exchange for a 25-year extension of the lease of its Black Sea fleet on Ukraine's Crimean peninsula.



The announcement of the deal came after talks in the eastern Ukrainian city of Kharkiv between Ukrainian President Viktor Yanukovich and his Russian counterpart Dmitry Medvedev.

"Our Ukrainian partners will receive a discount in the price of gas," Reuters quoted Medvedev telling journalists.

Referring to the complicated formula by which the pricing for gas to Ukraine is calculated, he said Russia would give Ukraine a $100 discount on gas if the price was higher than $330 per thousand cubic metres, or 30% if the price was lower than that.

Yanukovich, who said…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index