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Ukraine's gas balance discussed in Moscow

      RBC, 06.09.2006, Moscow 16:47:07.Ukrainian Fuel and Energy Minister Yury Boiko is in Moscow today discussing the maintenance of Ukraine's gas balance in 2006 with Alexei Miller, Gazprom's CEO, First Deputy Fuel and Energy Minister Vadim Chuprun told a government meeting today. The parties agreed to meet right after Gazprom and Turkmenistan agreed on gas supplies at $100 per 1,000 cubic meters for 2006-2009.

      A source in the Ukrainian Fuel and Energy Ministry said that the Ministry held phone conversations with Russian and Turkmen colleagues based on yesterday's agreements between Gazprom and Turkmenistan. "Theoretically Russia can raise the question of increasing the gas price for Ukraine due to the increase from $65 to $100 per 1,000 cubic meters. But when the Russian and Ukrainian Prime Ministers agreed to reserve the gas price for Ukraine at $95 till the end of 2006, it was already known that Turkmenistan intended to raise the price to $100 per 1,000 cubic meters," the source said.

      Yesterday Gazprom and Turkmenistan agreed on purchasing an extra 12bn cubic meters of gas to supply to Ukraine in Q4 2006. The price of this gas will increase from $65 to $100 per 1,000 cubic meters. In 2007-2009 Russia will also buy Turkmen gas at $100 per 1,000 cubic meters.

      The gas price for Ukraine in 2006-2007 is to be negotiated soon.

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