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Tuesday, 14 October, 2008, 18:20 GMT | more prices >>

Ukraine offers olive branch to Gazprom



By Upstream staff 

Ukraine is willing to settle its gas debts owed to Gazprom on the proviso that it can have a direct import agreement with the Russian gas monopoly, First Deputy Prime Minister Oleksandr Turchynov said today.

Gazprom has threatened to cut some supplies to Ukraine if the state energy player Naftohaz Ukrainy does not settle a debt of $1.5 billion by tomorrow.

Ukraine's new government under Yulia Tymoshenko wants to get rid of supply intermediaries, especially RosUkrEnergo, which is partly owned by Gazprom, as it says their existence raises gas import prices and their structures are opaque and vulnerable to corruption.

"The first deputy prime minister confirms that Naftohaz indeed has debts," said a statement on the government's website.

"Naftohaz is ready to commit to full repayment of its debt in exchange for an agreement to sign a direct contract and relevant documents with Russia's Gazprom," it said.

Both Russia and Ukraine have assured Europe - which receives a quarter of its gas from Russia, most of it via Ukraine - that the row would not disrupt westward gas flows, Reuters reported.

A disagreement over the price of Russian gas imports led to a brief supply cut at the start of 2006, which affected some European countries, but a similar row over debts last October was resolved without affecting supplies.

The latest dispute burst open days before President Viktor Yushchenko's visit to Moscow on Tuesday and weeks before Prime Minister Yulia Tymoshenko was due in Russia. Both are expected to talk about gas agreements.

Tymoshenko, who for long has accused the energy sector of corrupt practices and Moscow of politicising energy issues, wants to raise the price Russia pays for transit through Ukrainian territory, as well as abolishing the intermediaries.

The government said top Naftohaz officials were due in Moscow today to hold talks with Gazprom.

Gazprom had no immediate comment, but on Friday it said after a meeting that day with a top Naftohaz official that no deal had been reached.


Sunday, 10 February, 2008, 15:41 GMT  | last updated: Sunday, 10 February, 2008, 15:41 GMT

Deal on table: in the gas row between Gazprom and Ukraine
 

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