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Turkmen-Ukrainian gas talks suspended - ministry

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A new round of talks on supplies of natural gas from Turkmenistan to Ukraine has been suspended, a Ukrainian fuel and energy ministry official said Tuesday.

KIEV, May 30 (RIA Novosti) - A new round of talks on supplies of natural gas from Turkmenistan to Ukraine has been suspended, a Ukrainian fuel and energy ministry official said Tuesday.

Turkmenistan, which became Ukraine's principal supplier of natural gas after Kiev decided to buy less gas from Russia in the wake of a price dispute at the start of the year, has not delivered gas to Ukraine since the beginning of the year.

"A visit by a Ukrainian delegation to Ashgabat has been postponed, and a new date is being finalized," the source said, adding that the delay was due to Naftogaz, Ukraine's national oil and gas company, having no legitimate representative at the talks as it still has to appoint a new head.

"The delegation's visit in Ashgabat is aimed at [signing] an agreement on resumption of direct natural gas supplies for the second half of this year. The delegation is also set to discuss preparations for Turkmen President Saparpurat Niyazov's visit to Ukraine," the official said.

In March, Naftogaz and the Turkmen government signed an agreement on bilateral settlements on natural gas shipments to Ukraine in 2003-05.

Under the agreement, the $88.34 million pre-payment that Ukraine made for 2006 gas deliveries will be counted toward its 2003-05 gas debt to Turkmenistan, thereby clearing the hard currency part of the Ukrainian company's debt and recognizing a $68 million commodities debt that it pledged to discharge by August 10, 2006.

Ukraine's fuel and energy minister Ivan Plackov said earlier this month a new contract would determine the volume and price of gas supplies not only for this year, but possibly for the next five years, depending on the outcome of the talks.

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