KIEV, July 15 – Ukraine has secured enough natural gas supplies from Russia to ensure steady transit of Russian gas to markets in the European Union through the end of the year, Naftogaz Ukrayiny reported Tuesday.

Naftogaz Ukrayiny, following talks with Gazprom in Moscow, said the Russian company will supply 55 billion cubic meters of gas in 2008, up from 50 billion cubic meters in 2007.

“This will completely satisfy demand for gas in the country and will also ensure uninterrupted transit of Russian gas to EU countries,” Naftogaz said in a statement.

Naftogaz moves 110 billion cubic meters of Russian gas to European customers annually, which is up to 80% of Russia’s Europe-bound gas supplies. Russia accounts for a third of Europe’s gas consumption.

The statement was released hours after Oleh Dubyna, the head of Naftogaz, had returned back to Kiev following two days of talks - Monday and Tuesday - in Moscow.

The statement responds to allegations from Yuriy Boyko, a former energy and fuel minister and a senior member of the opposition Regions Party, that the government has been failing to secure enough gas this year.

Boyko warned the failure has been jeopardizing the steady transit of Russian gas to Europe.

Ukraine produces 20 billion cu m of gas domestically and needs about 55 billion cu m/year of gas imports to meet its annual gas demand of about 75 billion cu m, according to the Energy and Fuel Ministry.

Meanwhile, the statement gives little detail on whether progress has been made over volume of gas to be supplied in 2009, as well as price that Russia seeks to charge for gas supplies next year.

These questions have been the key issues in talks between Ukraine and Russia over the past three months amid fears that Russia may steeply increase gas prices it will charge Ukraine next year.

Gazprom has earlier this year indicated that the gas price may grow to as much as $400 per 1,000 cubic meters in 2009, up from $179.5/1,000 cu m charged in 2008.

Ukrainian Prime Minister Yulia Tymoshenko rejected such a steep price hike, warning that Ukraine may in turn steeply hike price it charges Gazprom for the transit of gas to the EU.

Tymoshenko met her Russian counterpart Vladimir Putin last month and both indicated intentions to strike the agreement before September 15.

Relations between Ukraine and Russia have been strained over the past several years over Kiev’s push seeking to join NATO, an alliance that Moscow views as a military threat.

In December, NATO is to announce whether Ukraine is granted the Membership Action Plan, a program that immediately precedes the accession, in a move that will provide more strains to the relations between Kiev and Moscow.

Analysts said that Russia will probably wait until after the NATO summit in December before announcing the gas prices it will charge Ukraine in 2009.

“The gas agreement with Russia will be signed after the NATO summit in December,” Kostiantyn Borodin, the head of the Center for Energy Research, a Kiev-based think tank, said.

He said the price may actually reach $450 per 1,000 cu m if Ukraine joins the MAP. (sb/ez)