You're reading: Ukraine to continue talks on revision of Russian gas pricing formula

The Ukrainian government will continue in 2011 negotiations concerning the revision of the gas pricing formula in the agreement on Russian natural gas supplies and creating a tripartite joint venture for running the domestic gas transport system, Ukrainian Prime Minister Mykola Azarov has said.

‘We will not for a single moment relax our efforts to convince our Russian partners of the need to revise this unequal agreement… Thus, what we didn’t manage to do in 2010, will be our goal for 2011. A large group of negotiators will focus their efforts on this task," he said in an exclusive interview with Interfax-Ukraine on Thursday, Jan. 6.

The premier said that the recent global trends of growing oil prices would lead an increase of the gas price for Ukraine under the terms of the existing agreements.

"Clearly, we should find the arguments that will convince the Russian side that this formula should be abandoned," he said.

In this regard, Azarov suggested that a tripartite joint venture should be set up, which will ensure the transportation of the guaranteed volumes of gas.

He said that the argument for the formation of a joint venture could be used as one of the conditions for the revision of gas pricing formula. The premier stressed that Ukraine’s task is to hold talks not only with Russia but also with the European Union, without which Ukraine could not get the guarantees of the volume of gas flow through its GTS.

Azarov also said that one of the government’s priorities for next year will be increasing Ukraine’s domestic production of gas.