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Russia has no plans to monopolize Ukraine gas system - Putin

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Russia has no plans to monopolize Ukraine's natural gas transportation system, President Vladimir Putin said Thursday at his final Kremlin news conference.
MOSCOW, February 14 (RIA Novosti) - Russia has no plans to monopolize Ukraine's natural gas transportation system, President Vladimir Putin said Thursday at his final Kremlin news conference.

Putin said Russia only wanted the system to function normally, adding that Russia and Ukraine had agreed to set up an international gas consortium with the participation of European partners to attract funds to maintain the system and ensure its development.

Putin said the Ukrainian gas transportation system would remain under Ukraine's ownership.

The Russian president said it was natural for Russia to seek market prices for gas supplies to other countries.

"I am pleased to say that the Ukrainian leadership, first of all, the president, understands this well," Putin said.

Ukraine's first deputy premier, Oleksandr Turchinov, said earlier the gas price for Ukraine this year would remain at the 2007 level of $179 per 1,000 cu m, and that Ukraine would not raise its transit fee, which stands at $1.79 per 1,000 cu m per 100 km.

Russia and Ukraine reached an agreement on Tuesday to avoid a reduction in natural gas supplies threatened by Gazprom if Kiev failed to pay off its $1.5 billion gas debt. Ukraine agreed to start paying the debt on Thursday, and Russia agreed to remove intermediary traders.

The Russian energy giant said on Thursday that Gazprom and Ukrainian national energy company Naftogaz had postponed the signing of a natural gas supply contract until next week, the Russian energy giant said Thursday.

"The Ukrainian side have taken a break until next week to carefully work through the issues connected with the document signing," spokesman Sergei Kupriyanov said.

The latest gas row raised concerns in Europe, where consumers were affected by a bitter pricing dispute between Moscow and Kiev at the start of 2006 and Europe-bound supplies were disrupted.

Putin also said that Russia had not made any concessions to Ukraine in resolving a gas dispute between the ex-Soviet allies when it accepted proposals from the Ukrainian side, including the removal of intermediaries in natural gas sales.

"These intermediaries were created on the initiative of the Ukrainian side while the founder on our part was Gazprom, which made the situation clear and transparent," Putin said.

The current gas supply scheme between Russia and Ukraine includes RosUkrEnergo, a Swiss-registered trader co-owned by Gazprom, which has a monopoly on shipments to Ukraine. The firm sells gas to UkrGazEnergo, its joint venture with Naftogaz, which resells it to other traders.

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