#24 - JRL 2006-246 - JRL Home
Ukrainian president criticizes new gas deal with Russia

KIEV, November 1 (RIA Novosti) - Ukrainian president Viktor Yushchenko blasted Wednesday Prime Minister Viktor Yanukovych's government for its failure to keep the price of Russian natural gas in 2007 at its current level.

Russia and Ukraine signed an agreement October 24 raising the price for natural gas deliveries to Ukraine from $95 per 1,000 cubic meters in 2006 to $130 per 1,000 cubic meters in 2007.

"Ukraine failed to defend the price it paid in 2006 for gas," Yushchenko said, adding that the gas price formula was not transparent and will not allow the Ukrainian side to forecast future changes in gas tariffs.

He also said the increase in gas prices is not accompanied by changes in transit tariffs. The transit rate for natural gas was set at $1.6 per 1,000 cubic meters per 100 kilometers in January 2006, and is valid until 2011.

Fuel and Energy Minister Yuriy Boiko said October 25 after a Cabinet meeting that the government does not plan to increase its tariffs for the transit of natural gas across Ukrainian territory following a price hike for Russian natural gas supplied to Ukraine.

Yushchenko hinted at the possibility of making changes to the new gas agreement at a future meeting of Ukraine's National Security and Defense Council.

"The presidential secretariat will review all aspects of the [new] Ukrainian-Russian gas agreement in order to formulate a better-defined position for Ukraine on the issue [of gas prices] during a meeting of the National Security and Defense Council," the Ukrainian president said.