XIANGANG (Hong Kong), December 16 (RIA Novosti, Mark Zavadsky) - The domestic price for natural gas in Ukraine is too low but that should have no bearing on negotiations with Russia about gas deliveries to the country, the economics minister said Friday.
"I have repeated my opinion on natural gas more than once," Arseniy Yatsenyuk said. "It is unacceptable for a transitional economy to sell gas to its people and industrial enterprises for lower prices than in neighboring Russia, which is basically the largest gas producer."
But the minister said this matter had no relation to ongoing Russian-Ukrainian negotiations on gas supplies. The talks, which have been continuing for nine months, have hit an impasse over gas prices and transit fees that have now turned into a major dispute.
"We will deal with our prices and industry ourselves," he said.
"All these domestic issues should not concern external contacts between Gazprom and Naftogaz," Yatsenyuk said, referring to the labored gas talks between the Russian energy giant and the Ukrainian national gas company.
The minister said Russia had the right to establish any gas price but urged caution. "Abusing this right is a legal offense," Yatsenyuk said.
Ukraine has been paying about $50 per 1,000 cubic meters of Russian natural gas under a barter agreement in the past five years. Gazprom decided to raise the price to the market level of $160 starting from 2006. Ukraine, in turn, insisted on charging higher fees for Russian gas transit via its territory. After attempts to reach an agreement failed, Gazprom Deputy Chairman Alexander Medvedev said Wednesday the price for Ukraine would be raised to a total of $220-230.
