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 January 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.