Ukraine plans to buy as much natural gas from Russia as is necessary for the Ukrainian economy, Energy and Coal Industry Minister Yuriy Boiko says.
"We are cutting gas purchases by half, and we will be getting 27 billion cubic meters starting Jan. 1," Boiko told journalists in Kyiv on Wednesday.
Asked how this agrees with the existing gas contracts with Russia, Boiko replied, "We will be buying as much gas as is needed for our economy. If our partners have questions, they can solve them in a civilized way."
Ukraine is continuing negotiations on gas with Russia, Boiko said. "There are issues on which we have reached a compromise, and there are outstanding issues," he said.
"The negotiations will continue as long as is necessary, so as to find a model acceptable to our national economy," he said.
Boiko said he plans to appear at the Verkhovna Rada on Jan. 13 to take questions from parliamentarians unless he has to travel somewhere in line with his ministerial duties.
The minister said he hoped to be able to reach a compromise with Russia on the issue of Ukraine cutting gas purchases to 27 billion cubic meters in 2012.
Negotiations on the subject of gas prices are currently underway and will continue until compromise is reached, he said.
Senior Ukrainian officials have repeatedly said that one of the country’s main energy policy goals is to reduce natural gas consumption with an eventual increase in domestic production.
In August 2011, Ukraine’s national oil and gas company Naftogaz Ukrainy submitted an application to Gazprom to reduce its natural gas purchases to 27 billion cubic meters in 2012.
Under the gas contract between Gazprom and Naftogaz that was signed in January 2009, Naftogaz agreed to buy 52 billion cubic meters of natural gas a year beginning in 2010. It can import less, but under the contract’s take-or-pay provision, Ukraine must pay for a minimum of 80% of that volume, regardless of the actual amount taken.
The contract provides for the basic volume to be amended down to 41.6 billion cubic meters, but the change must be agreed before July 1 of the preceding year.
The change would reduce the take-or-pay threshold to 33.3 billion cubic meters.
Ukrainian demand for natural gas in 2012 is forecast at 61.298 billion cubic meters, of which domestic production will cover 21.578 billion cubic meters, imports 33.917 billion cubic meters and off-take from storage 5.803 billion cubic meters.
