Ukrainian Prime Minister Mykola Azarov has said that Ukraine would welcome Russia's participation in a new gas production company.
He said at a meeting of the press club in Kyiv on Monday that the company could obtain a license for the production of about one trillion cubic meters of natural gas.
"We hope the necessary compromise with Russia will be found. Long-term interests must outbalance the spur of the moment," he said, commenting on the gas negotiating process between Moscow and Kyiv in general.
Reforming the national oil and gas company, Naftogaz, which the Ukrainian is embarking on, will ease the country’s talks with the International Monetary Fund (IMF), he said.
"We were behind the IMF mission delaying its visit until pension reforms are approved and the Naftogaz deficit is resolved," Azarov said.
Ukraine currently produces around 20 billion cubic meters of natural gas per year. The Energy and Coal Industry Ministry predicts gas consumption will fall to 54 bcm in 2011 and by another 10 bcm, in 2012.
Azarov said last week that Ukraine had proven gas reserves of around 1 trillion cu m and resources of 11-20 trillion cu m.
Kyiv has been trying for the last 18 months to renegotiate the 11-year gas contracts that it signed in January 2009, pushing for a reduction in the price of gas and guaranteed transit volumes. Russia is making the talks conditional on Naftogaz merging with Gazprom.
