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Ukraine bids for gas deal revamp



By Upstream staff 

Ukraine's high-level energy delegation will hold talks with Russian gas giant Gazprom today as Ukraine's new government seeks to revise the terms of gas agreements with Moscow.

Russia transports four-fifths of its exports to Europe via Ukraine and industry observers carefully monitor gas price disputes between Kiev and Moscow, as they can lead to transit supply cuts.

In December, Gazprom agreed to increase charges for gas supplies to Ukraine by 38%, only weeks before the arrival of the new government, led by Yulia Tymoshenko.

Tymoshenko, who traditionally has difficult ties with Moscow, promised to eliminate all intermediaries in gas trade with Moscow soon after her appointment later in December, but refrained from tough action before the New Year, a Reuters report said.

Yesterday, Russian business daily Kommersant quoted Ukrainian First Deputy Prime Minister Alexander Turchinov as saying Oleg Dubina, the new head of Ukraine's state energy company, Naftohaz Ukrainy, will hold talks with Gazprom this week.

He said talks would focus on intermediaries and fees that Ukraine charges for the transit of Russian gas.

A Gazprom source told Reuters talks would be held today, but declined further comment.

Under the December deal, Gazprom will sell gas to Ukraine at $179.5 per 1000 cubic metres in 2008 and pay Ukraine $1.7 per Mcm for the transit of gas per 100 kilometres, up from the previous rate of $1.6 per Mcm.

Kommersant quoted industry sources as saying Dubina will ask Gazprom to boost its transit fee payments to $9.32 per Mcm.

Gazprom declined to comment on the report.

Tymoshenko has long criticised the role of intermediary company RosUkrEnergo, half controlled by Gazprom, as an opaque company that increases the cost of gas transit and has said Gazprom needs to deal direct with Naftohaz.


Thursday, 17 January, 2008, 12:26 GMT  | last updated: Thursday, 17 January, 2008, 12:26 GMT

On the agenda: a new gas deal
 

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