Make us your home page

Russian hardens position in Ukraine gas dispute

Gazprom CEO Alexei Miller speaks at a news conference about a possible increase in the price of natural gas.

Associated Press

Gazprom CEO Alexei Miller speaks at a news conference about a possible increase in the price of natural gas.

MOSCOW — Russia's state-controlled gas company said Sunday that it was hiking the price it wants Ukraine to pay for natural gas, hardening its position in a dispute that has decreased supplies to Europe.

Gazprom CEO Alexei Miller said that the company wanted $450 per 1,000 cubic meters, up from its last offer of $418.

Ukraine's state gas company accused Gazprom of being unwilling to seek a compromise and said any price increase should be accompanied by a similar increase in the fee Ukraine gets from Russia to move gas through its pipelines on to European customers.

Russia's tough stance may reflect both political and economic considerations. Gazprom, which once aspired to be the largest corporation in the world, has been hit hard by the financial crisis and is deep in debt.

The negotiations also have been hampered by strained relations between the Kremlin and Ukraine's West-leaning government. Kiev has angered Moscow by seeking to join NATO and by supporting Georgia during its August war with Russia.

Last year, Ukraine paid $179.50. Its state company, Naftogaz, refused Gazprom's offer of $250 before negotiations over a 2009 contract broke down Wednesday, prompting Gazprom to shut down gas supplies to Ukraine.

Gazprom has continued to send gas to Europe, which relies on the company for a quarter of its gas. But 80 percent of the gas Gazprom sends west passes through the same pipelines that supply Ukraine, and over the past four days the pressure in the pipelines has dropped. Some European countries — Bulgaria, the Czech Republic, Hungary, Poland and Romania — have reported a decline in supplies. Ukraine has said its gas reserves will last for weeks.

Gazprom said it hoped Sunday's offer would bring Naftogaz back to the table as soon as possible, but Naftogaz was unbowed.

"We are open for negotiations if there are reasonable proposals that correspond to European market conditions," Naftogaz spokesman Valentyn Zemlyansky said. "If the price for gas is $450, then the transit fee will rise accordingly."

Russian hardens position in Ukraine gas dispute 01/04/09 [Last modified: Wednesday, November 3, 2010 9:15am]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours