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Nation    

Ukraine turns to Germans for gas supplies
Journal Staff Report

KIEV, March 11 - Ukraine wants to purchase three million cubic meters of gas from German's RWE energy firm per day to reduce its dependence on Russian gas supplies, Ukraine's Dzerkalo Tyzhnia weekly reported on Sunday.

"Naftogaz Ukrayiny plans to sign a short-term contract with Germany's RWE to deliver spot gas, bought in Europe, through Slovakian pipelines to Ukraine. The signing is likely to happen in the nearest future," the paper reported.

The paper also reported that Ukraine held talks with Turkey and Bulgaria to deliver liquefied natural gas from Turkish storage facilities through the Bulgarian gas transportation system.

Russia and Ukraine have been embroiled in a drawn-out dispute over the price and volume of Russian gas purchased by Ukraine. Kiev insists the current price is too high, while Moscow is pushing for control of Ukraine’s system of gas transit to Europe, as part of a deal to cut prices.

Prime Minister Mykola Azarov recently said that Moscow had sent a new gas proposal to Kiev stipulating a 10 percent discount in the price of gas, which Ukraine was considering.

Kiev imported over 1.8 billion cubic meters of Russian gas in January 2012, while in February it had to increase purchases to 3.1 billion cu m due to the severe cold. An annual average Russian gas price for Ukraine for this year stands at $416 per 1,000 cu m.

Ukraine pays about $3.8 billion too much every year for Russian gas when compared with neighboring countries, President Viktor Yanukovych said on Wednesday.

"Taking into account [the gas prices] of our neighbors, we pay nearly 30 billion hryvna more for Russian gas. These funds could have been used for improving the social standards and development of our state," Yanukovych told the government meeting.

Yanukovych also said that high gas price is detrimental to the country's economic development. The Government is seeking to resolve the issues of debt risks and "the shameful gas contracts of the previous government" to a minimum for recent two years, the country's leader said.

Energy Minister Yuriy Boyko announced this January that the country was seeking to cut Russian gas imports to 27 billion cubic meters from the 2012 contracted volume of 52 bcm. Russian gas giant Gazprom reacted by saying the current contract did not stipulate unilateral changes in gas purchases. (rn/ez)




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Currencies (in hryvnias)
  12.04.2024 prev
USD 39.17 39.02
RUR 0.418 0.418
EUR 42.02 42.36

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  11.04.2024 prev
PFTS 507.0 507.0
source: PFTS

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