KIEV, June 6 – Prime Minister Mykola Azarov will seek lower natural gas prices and higher transit fees that Ukraine charges Gazprom at talks with his Russian counterpart Vladimir Putin in Moscow on Tuesday.

But Russia will seek to get Ukraine’s foreign trade policy in line with its Moscow-led trade bloc, and will also seek to discuss “strategic issues” of cooperation in the gas sector.

Positions outlined by the Russian government in a statement and by Azarov in an interview with the state news agency Ukrinform show the parties are unlikely to make any significant progress.

“Certain speculations emerge about ‘unfair’ Russian-Ukrainian [gas] agreements and [demands for] revision in favor of Kiev of prices for gas supplied to Ukraine,” the press service of the Russian government said in the statement.

Russia will continue to press Ukraine for scrapping its free trade talks with the European Union in favor of closer ties with Moscow.

“As before, issues that are waiting to be resolved include incompatible trade regimes between Russia and Ukraine in the context of international free trade agreements,” the press service said.

But Ukraine will seek to persuade Russia to scrap the 2009 gas agreement by changing the way that gas prices are set in order to lower the prices, Azarov said.

Ukraine pays more for Russian gas than, for example, Slovakia and Germany, which are further away from Russia, Azarov said in the interview. Ukraine should be able to qualify for an extra discount for buying huge amounts and for using its underground gas storage facilities, he said.

Also, Azarov will seek to persuade Russia that it must start paying higher tariffs for moving its gas across Ukraine to Europe.

“Ukraine is suffering losses because it does not receive compensation for the growing price of gas, compensation that is linked with the shipment of gas,” Azarov said. “Since the price has increased, let’s compensate the tariff for shipment.”

Ukraine seeks secure lower natural gas prices because growing prices of crude oil may push gas price to $500 per 1,000 cubic meters, the price that will make operation of many Ukrainian fertilizer producers unprofitable.

Gazprom Chief Executive Officer Alexei Miller said Monday that Ukraine is concerned that fourth-quarter gas prices for Europe may reach $500 per 1,000 cubic meters.

This is worrying Ukrainian consumers, Miller said, according to the Gazprom press service.

Gazprom doesn’t plan to change the price formula for Ukraine, Interfax said, citing Miller. (sb/ez)