A union of Russian Gazprom and Neftegaz Ukrainy will make it possible to sell gas to Ukrainian consumers at Russian domestic prices, Gazprom CEO Alexei Miller told Rossiya 24 channel on Friday.
“We think that Ukrainian consumers can get Russian gas at Russian domestic prices in this case,” he said after a meeting with Ukrainian Fuel and Energy Minister Yuri Boiko.
Miller said he implied the price of 1,880 rubles per 1,000 cubic meters.
Negotiations between Russian Gazprom and Neftegaz Ukrainy on the possible establishment of a joint venture have advanced, a Gazprom representative said on Friday in comment on the Miller-Boiko meeting.
Miller and Boiko discussed the fulfillment of long-term gas delivery and transit contracts and prospects for cooperation in 2011, Gazprom said.
The interlocutors paid special attention to the possible establishment of a joint venture, Gazprom said.
They also discussed assets the corporations might allot for the joint venture. “The sides confirmed an advancement of the joint venture negotiations,” the company said.
Ukrainian Prime Minister Nikolai Azarov said on Wednesday that Kiev would insist on reviewing gas agreements with Russia. “We wish to review the extremely disadvantageous agreement with Russia, and we will be insistent in our wish,” he said.
In the opinion of Azarov, gas deliveries on prices that change from one quarter to another are ‘oppressive terms’.
Ukraine was paying $330 per 1,000 cubic meters of gas in the first quarter of this year, and the price would exceed $390 per 1,000 cubic meters in the fourth quarter, Azarov said.
“This price will lead to an economic catastrophe in Ukraine. The price was lessened by $100 per 1,000 cubic meters thanks to the agreement Gazprom and Neftegaz Ukrainy signed in April to define terms of gas delivery to Ukraine and gas transit to Europe in 2009-2019. The deal helped Ukraine make both ends meet,” Azarov said.