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Media: Azarov discloses some points of Kyiv-Moscow agreements in gas sector

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Sept. 26, 2011, 5:35 p.m. | Politics — by Interfax-Ukraine
Russia and Ukraine will change the terms of their cooperation in the gas sector in November 2011, the Mirror Weekly. Ukraine newspaper (zn.ua) has reported, citing its own sources. According to the newspaper, at a meeting on Monday, Ukrainian Prime Minister Mykola Azarov disclosed only two points of the future changes.

He said that Ukrainian and Russian Presidents Viktor Yanukovych and Dmitry Medvedev had agreed to lower the tariff for gas transit across Ukraine to the level of prime cost. Russia, in turn, will reduce the price of gas for Ukraine's needs in the budget and social sectors.

Azarov said that in October 2011, experts from both countries would prepare the necessary documents and that the agreement of the presidents would be signed in November 2011.

The current cost of Russian gas transit and the size of a possible discount were not reported.

The prime minister did not specify how the presidents' agreements would be implemented – either by signing a new basic agreement or through an additional agreement.

It was not reported at the meeting whether the future changes will concern the formula for calculating the price of gas, the "take or pay" principle, guarantees to Russia in terms of gas transit and the Ukrainian gas transport system.


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Anonymous Sept. 26, 2011, 11:28 p.m.    

Ukraine will be held to zero profit on the transit pipelines (unless a total rehabilitation of the pipelines is included in the maintenance costs)while Russia will continue to raise the price of gas supplied to Ukraine in the long term.

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