Naftogaz thinks long term with Gazprom
Ukraine's state-run player Naftogaz is seeking a 15-year contract from Gazprom
which would fix gas import price increases for the next five years, company
boss Oleh Dubyna said today.
Russia and Ukraine have had periodic disputes in recent years over gas prices
which have led to supply cuts, including one at the beginning of 2006 which
briefly affected European Union countries.
The ex-Soviet state transits 115 billion cubic metres of gas westwards,
accounting for almost a quarter of the European Union's needs and 80% of
Russia's total gas exports.
The latest row was resolved last month, when Naftogaz and Gazprom signed a
2008 supply contract for 55 Bcm at $179.5 per 1000 cubic metres - an
increase from $130 per Mcm last year and $95 per Mcm in 2006.
"I would like to have at first a contract in which it will be precisely noted
- from the current $179 per Mcm, in the next five years, there will be
percentage rises every year. And this will be fixed," Reuters quoted Dubyna
as saying.
As an ex-Soviet state, Ukraine had long enjoyed subsidised energy prices from
Russia.
Moscow now wants to raise these to market levels but the yearly negotiations
became especially fierce after the 2004 "Orange" revolution which swept to
power the Western-leaning President Viktor Yushchenko.
Dubyna acknowledged that Ukraine would have to pay market prices at some point
but wanted the increases to be predictable.
"We need a long-term contract in which there would be gradual price rises
towards central European prices worked out by some kind of formula," he said.
He said the government is looking over a two-pronged agreement that Naftogaz
has prepared comprising of contracts on transit and domestic supplies. He
did not say what price Ukraine could pay next year, though he expected an
increase.
Dubyna said there should be a direct contract between Naftogaz and Gazprom,
getting rid of the RosUkrEnergo intermediary which the Ukrainian government
accuses of masking corruption in the complex regional gas transit system.
"The supply system should suit both Gazprom and Ukraine," he said.
07 May 2008 11:34 GMT
| last updated:
07 May 2008 11:34 GMT
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