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Transition to market gas prices for Ukraine to take several years

      RBC, 23.07.2008, Kiev 12:36:50.A transition to market prices for natural gas supplied to Ukraine will take several years, so there will be no shock over a sharp rise in prices, the country's Prime Minister Yulia Timoshenko said during a cabinet meeting today. She noted that the model for setting the gas prices for Ukraine was quite clear. The prices will be finally agreed upon once Gazprom has completed talks with Turkmenistan, Kazakhstan, and Uzbekistan regarding Central Asian gas prices.

      Timoshenko pointed out that, thanks to its agreements with Russia, Ukraine had already accumulated 8bn cubic meters of gas in underground storage facilities and that it intended to increase its gas stores to 14.5bn - 15bn cubic meters before the start of the heating season. The gas belongs to Naftogaz of Ukraine and is being purchased at $179.5 per 1,000 cubic meters.

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