Ukraine says won’t sell gas pipelines to Russia

* Ukraine firm on gas pipeline ownership

* Admits it may never get a price discount from Russia

* PM says dispute will not escalate into a “gas war”

(Adds details, background)

KYIV, Jan 13 (Reuters) – Ukraine will not sell its gas
pipeline network to Russia in exchange for supplies of cheaper
gas, Ukrainian Energy Minister Yuri Boiko said on Friday, ruling
out a solution long suggested by Moscow.

He pledged, however, to honour the existing deal, which
Ukraine considers unfair, if talks on revising it fall through.

Ukraine, which depends heavily on Russian gas supplies, has
sought for over a year to renegotiate a 2009 deal with Moscow,
which it says sets an exorbitant price for the fuel. But talks
have failed to produce any results so far.

“The issue of (a pipeline network) sale has never been on
the agenda. We dismissed it immediately,” Boiko told reporters.
“If we find a model that satisfies both sides, we will make a
deal. Otherwise we will work under the existing contract.”

Boiko appeared to be setting out the Ukrainian position
ahead of a fresh round of talks, which are due to begin on Jan.
17 in Moscow.

Ukraine under the present 10-year agreement is set to pay
$416 per thousand cubic metres in the first quarter of this
year, but is hoping to get Russia to agree to a price of no more
than $250.
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