KIEV, Feb. 24 - Ukraine will cut imports of Russian natural gas and tap alternative sources of energy while also seeking lower gas prices from Russia, President Viktor Yanukovych said Friday.

He said the alternative sources of energy will only make Ukraine’s position stronger at gas price negotiations with Russia.

“We go the way of reducing consumption and have considerably cut [gas] imports,” Yanukovych said during his trip to the Dnipropetrovsk region, the presidential press service reported. “We go the way of securing alternative fuel and diversification of gas supplies.”

“We believe that without the alternative energy our position will always be weak,” Yanukovych said.

The comment indicates that Ukraine has rejected Russia’s recent proposal to cut gas prices 10% if Ukraine agrees to buy at least 33 billion cubic meters of gas in 2012.

Ukrainian Energy and Coal Industry Minister Yuriy Boyko said last month that Ukraine will cut Russian gas imports to 27 billion cu m in 2012, from 40 billion cu m in 2011 because of high gas prices.

Russia delivered the proposals on Monday during the visit by Sergei Naryshkin, the head of the State Duma, the lower house of Russian Parliament.

For any greater price cuts, Russia suggested that Gazprom has to acquire at least 50% of Ukraine’s gas transportation system, Kommersant daily reported citing a Russian source.

Ukraine had been seeking a gas price cut to $230-250 per 1,000 cu m from $416/1,000 cu m currently, and was ready to create a trilateral joint venture to operate its gas transportation system in which Gazprom would control 33% stake.

The developments come two day after Gazprom has threatened to reduce to “zero” shipments of gas Russian gas via Ukrainian pipelines to Europe by using alternative gas supply routes.

Ukraine is currently the main shipper of Russian gas to Europe accounting for up to 80% of Russia’s Europe-bound gas supplies.

Ukraine earns about $1.8 billion annually from shipping up to 110 billion cubic meters of Russian gas to Europe.

This revenue would be lost if Russia, which supplies a quarter of Europe’s gas demand, could find alternative way of shipping its gas to Europe bypassing Ukraine.

In order for the threat to materialize, Russia would have to start and finish construction of 20 billion euros worth gas pipeline across the Black Sea, called South Stream. This would take years to complete the project.

Ukrainian Prime Minister Mykola Azarov on Thursday dismissed the threat, and suggested that Russia would waste the money if it builds South Stream.

“Ukraine will find the way out of this situation. Don’t worry about this,” Azarov said. (nr/ez)