Ukraine and Russia at loggerheads over gas volumes
* Ukraine pessimistic on new gas deal with Moscow
* New round of talks to start from Jan. 15
* Kyiv eyes reduction in gas import volumes
* Gazprom concerned with Ukraine plans to cut volumes
(Updates with Gazprom comments, changes dateline from pvs KYIV)
By Pavel Polityuk and Vladimir Soldatkin
KYIV/MOSCOW, Jan 11 (Reuters) – Ukraine and Russia
locked horns on Wednesday over Kyiv’s plans to cut its demand
for gas, in a scenario reminiscent of previous spats that
temporarily halted Russian gas flows to Europe.
Ukraine is trying to ease pressure on state finances by
reducing gas import volumes as it becomes increasingly
pessimistic about getting Russia to cut the price of its gas
supplies.
The former Soviet republic, which relies on Russian gas
imports to power its chemical plants and heat homes, has been
attempting for more than a year to renegotiate a 2009 gas deal
with Moscow, which it says sets an exorbitant price for fuel.
The two sides are due to start a new round of talks in
Moscow on Jan. 15.
Energy Minister Yuri Boiko told reporters Ukraine would
insist on cutting Russian gas imports to 27 billion cubic metres
(bcm) this year from an estimated 40 bcm last year.
“We will buy (only) as much gas as our economy needs,” he
said.
Gazprom says the 2009 contract obliges Ukraine to pay for at
least 33 bcm a year.
“If our partners have issues (with that), they can resolve
them in a civilised way,” Boiko said. He said the new talks with
Moscow would last “as long as it is necessary to find an
acceptable solution”.
His and other comments marked a shift in tone by the Kyiv
government, which for most of last year projected the impression
that a deal with Moscow was just around the corner.
Russia’s gas exporting monopoly Gazprom was quick
to respond, saying Ukraine must stick to current arrangements.
“Gazprom is concerned about today’s statements that Ukraine
is going to take a significantly lower amount of gas than
stipulated by the contracts,” Gazprom Chief Executive Officer
Alexei Miller told Russian President Dmitry Medvedev.
Under the present 10-year agreement, Ukraine will have to
pay $416 per thousand cubic metres of gas in the first quarter
of 2012, according to a Ukrainian government source. It sees a
fairer price at $250.
The talks have failed to produce any results so far,
prompting fears of disruptions in Russian gas supplies to Europe
through Ukraine like those which took place during previous
disputes in 2009 and 2006.
“Our Russian partners do not want to change the terms of the
gas deal. They are happy with them,” Ukrainian Prime Minister
Mykola Azarov said in a sombre New Year’s message to a
government meeting in Kyiv.
“But we are telling the Russian leadership: if we plan to be
strategic partners, we should cooperate like strategic
partners,” he said.
Officials say Ukraine will compensate for lower gas imports
by boosting energy production from other sources such as coal.
Russia says it will give Ukraine a discount only if Gazprom
gets a stake in its transit pipeline network, something which
Kyiv is reluctant to allow for fears of losing leverage over its
partner.
(Reporting by Pavel Polityuk in Kyiv and Vladimir Soldatkin in
Moscow; Writing by Olzhas Auyezov/Richard Balmforth, editing by
Jane Baird)