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Ukraine may charge more for Russian gas transit
KIEV - Ukraine told Russia on Wednesday it may charge more for Russian gas transit to Europe if Russia sharply increases gas prices for Kiev, raising the prospect of another gas dispute between the two states.
- PUBLISHED: Wed 28 Nov 2007, 4:51 PM UPDATED: Sat 4 Apr 2015, 11:23 PM
Russia's gas export monopoly Gazprom said on Tuesday it had agreed to pay 30 to 50 percent more for Turkmen gas imports next year. That is likely to produce tough negotiations on pricing between Russia and Ukraine, a major consumer of Turkmen gas.
'It is important for us to use our arguments as one of the top gas transit states during talks (with Moscow). The changes in gas prices should no doubt be linked to our arguments about the levels of transit fees via Ukraine,' Economy Minister Anatoly Kinakh told reporters.
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Gazprom and Ukraine are holding difficult talks on next year's gas prices, which Gazprom has said could only be determined after it reaches a supply deal with Turkmenistan.
The gas market and analysts follow closely pricing talks between Moscow and Kiev because previous disputes led to disruptions in Russian gas supplies to Europe as Ukraine accounts for 80 percent of Russian gas transit.
Ukraine charges Russia $1.6 per 1,000 cubic metres of gas transported 100 km. Gazprom's pipeline runs about 1,000 km (620 miles) across Ukrainian territory.
That rate has stood since 2006, when it was raised from $1.09.