Log In

Reset Password

Russian gas exporters to make Ukraine pay more

NEW YORK (Reuters) - Russian gas export monopoly Gazprom said yesterday Ukraine would pay more for gas in 2008, but negotiations would determine the price.

Gazprom has agreed to raise the current price it pays for gas from Turkmenistan of $100 per 1,000 cubic meters (tcm), by between 30 percent and 50 percent next year.

Much of the Turkmen gas goes to Ukraine and analysts say the decision could lead to a rise of 40 percent for the price Ukraine pays for its imports.

"The price for Ukraine for next year will be higher than this year," Gazprom deputy chairman Alexander Medvedev said at a news conference in New York. "The negotiations that will take place very shortly will in fact determine this price. The negotiations are ongoing in a normal and constructive mode."

Ukraine threatened on Wednesday to charge more for piping Russian gas to Europe if Moscow imposed steep price rises for the fuel, raising the prospect of a row like the one that caused gas shortages in Europe in early 2006.

Mr. Medvedev said most of the questions pertaining to delivery have already been decided and "if the Ukrainian side meets all its obligations...then there is absolutely no risk as far as Europe is concerned."