Ukraine said it was ready to denounce a natural gas agreement
with Russia signed early January amid mounting differences in the
way Moscow and Kiev see how the agreement should be implemented.
Prime Minister Yuriy Yekhanurov suggested that Russia opposes
some parts of the agreement, but did not elaborate.
"We told the Russian party: we are ready to denounce the
agreement or certain clauses in the agreement if it doesn't satisfy
the Russian party, and to prepare the new one," Yekhanurov said in
remarks aired by television Thursday.
The development comes amid a deadlock in talks between the two
governments as Russia has been apparently refusing to guarantee
steady gas prices during the next five years, analysts said.
This is the first time Ukraine officially mentioned an option of
denouncing the agreement, which was signed Jan 4 to end a natural
gas dispute that had resulted in disruptions of Russian gas supplies
to Europe. RosUkrEnergo, a Swiss-based gas trader controlled by
Gazprom, last week agreed to stipulate in a contract that it will
supply gas to Ukraine at $95/1,000 cu m during the next five years.
However, RosUkrEnergo reserved the right to boost the prices if
Turkmenistan, the main gas source for the company, moves to hike the
prices. The Ukrainian government is seeking guarantees from the
Russian government that the gas price will not change during the
period. The issue is sensitive for Ukraine, whose chemical and steel
companies would become unprofitable if gas prices exceed $95/1,000
cu m, analysts said.
Ukraine has been seeking a steady gas price during the next five
years to give the companies enough time to introduce modern
technologies to reduce energy consumption.
Updated on: Feb 09, 2006
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