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Growth of gas price for Ukraine to lead to rising transit tariffs

      RBC, 14.07.2006, Kiev 11:08:34.Raising the gas price for Ukraine will result in growth of transit tariffs, Alexander Bolkisev, Chairman of Neftegaz Ukrainy, told a press conference today. "We are not using it as blackmail, this is a standard situation because the price of the fuel gas used in the transportation system will change too," Bolkisev added. He confirmed that the gas price for Ukraine would stay at $95 per 1,000 cubic meters till the end of 2006. "We discussed the issue with Gazprom's Chairman Alexei Miller and agreed that we did not have any grounds to raise this price," he said, commenting on the negotiations held on July 6, 2006. "I agree that Russia is still subsidizing Ukraine, but Ukraine has been owed this money for years," Bolkisev noted. Ukraine had been subsidizing Russia from 1994 till 2003 when gas prices went up, and in 2004 Russia subsidized Ukraine with $400m, he added.

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