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Gazprom not planning to alter gas price formula for Ukraine

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June 6, 2011, 3:03 p.m. | Business — by Interfax-Ukraine
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Sochi, June 6 (Interfax) - Gazprom does not plan to alter the price formula for gas for Ukraine and will not couple it to other fuels, the Russian gas giant's chief executive, Alexei Miller, told reporters. "We won't be dreaming up any new formula for anybody or pegging it to any other fuels," Miller said, adding that the price formula as per the contract with Ukraine was "an absolutely market one."

Higher prices for Russian gas are a cause for concern in Ukraine, "where consumption is higher than after the crisis. Consumers are worried about the price that could emerge in Q4 2011," Miller said.

But he said the long-term contract with Ukraine also envisaged market approaches to setting the transit rate for Russia gas across Ukraine and destined for Europe.

This transit will grow in volume in 2011 as Europe consumes more Russian gas.

"We have growth of 22% in gas supplies to Europe since the start of 2011, compared with the same period of last year. This also influences Ukraine's revenues," Miller said.

"We will continue to work with Ukraine based exclusively on the market," he said.
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Anonymous June 6, 2011, 3:08 p.m.    

Thank Yushenko and Yanukovych for undermining Tymoshenko's initial 2009 gas price that was 1/2 the current rate. And Yanukovych for the Kharkiv agreement.

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Anonymous June 6, 2011, 4:34 p.m.    

When is Yanukovych going to be charge with abuse of power for Ukraine having to pay so much money for gas from Russia? Russia not only got a good price for gas but ended getting the Black Fleet presence in Ukraine extended for years. This fiasco by Yanukovych and the POR is criminal. If the PGO was independent than a criminal investigation would be taking place but realization is that the criminal courts of Ukraine are under the total control of Yanuk. Another example, is the oil rig which the Minister of Energy negotiated and Ukraine over paid 150 million dollars. Why has't a criminal investigation started and why was the Minister of Energy trying to shut down the source of disclosure by utilizing the SBU? Yulia has been charge for costing Ukraine around 37 million dollars. Yet, the gas deal negotiated by Yanuk and the POR is costing Ukraine 6 times more than what Yulia negotiated with the Russians. She did not even have to include the Black Sea Fleet in the deal. The over payment of an oil rig of 150 million dollars has all the indications of corruption within the government.

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Anonymous June 6, 2011, 5:07 p.m.    

of course the Russian side has no desire to review the gas prices! after all why should they? there are a lot of countries which decided to reduce expenses connected with gas using and pass to renewable resources of energy and the Ukraine in their understanding is supposed to play the role of a product market. and of course their current position is politically motivated while all of this is only a kind of pressure upon the Ukraine, to make us join the Customs Union. the gas prices will rise, the tariffs too, the plants and factories will stay at the line of closure...and when the Ukranian society is ready to accept &quot;the bitter truth&quot; we will be offered by brotherly folk to join them (again).

but there is one more very important thing which is being followed from Miller`s words - according to him the price is fair! if it is so...and Russia made no pressure upon Timoshenko so former prime minister did nothing what may be considered as a misdeed...and as a result the last criminal case against her is politically motivated (what also makes believe that others too)

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