You're reading: Gazprom CEO to visit Ukraine for gas talks

POLTAVA, Ukraine, May 24 (Reuters) - Gazprom Chief Executive Alexei Miller was due to visit Kiev on Tuesday for a fresh round of talks on the price of Russian gas supplied to Ukraine, Ukrainian Energy Minister Yuri Boiko said on Tuesday.

Ukraine has been trying for months to renegotiate a 2009 gas deal with Russia, saying the price is unreasonably high. Moscow has so far been unwilling to review the agreement.

"The visit by Gazprom chief executive is one of the stages of the negotiation process," Boiko told reporters on a visit to the Ukrainian city of Poltava.

Under the current deal, the price of Russian gas is linked to the prices of oil and oil products — which have soared in recent months.

Ukraine is paying Russia $297 per 1,000 cubic metres this quarter and the price is set to rise to $400 by the end of this year.

Ukraine subsidises energy prices for households but has pledged to reduce the subsidies under its $15 billion deal with the International Monetary Fund.

However, the government is hesitant to drop the subsidies, fearing discontent.

"We will definitely insist on a price that will allow as to avoid raising utility prices this year," Boiko said.

"We are the largest market in Europe (for Gazprom) and if the largest customer is unhappy with the terms of a contract then the supplier must amend it."

Speaking on the condition of anonymity, though, an industry official told Reuters Ukraine’s hand was weak.

"We don’t have much to offer to Russia," he said. "Russia doesn’t need these talks, they are always trying to abandon them although they understand the contract is unfair."