Energy Headlines

Prime Minister of Ukraine and Naftogaz of Ukraine Chairman have had signed the gas supply contracts with Russia therefore they are responsible for full and timely payment for gas, said President Victor Yushchenko in his interview to Ukrainian journalists.

"The Agreements signed on January 19 do not strengthen cooperation, do not illustrate formation of market relations, but identify a large number of problems", said Victor Yushchenko. He stressed that Ukrainian side wishes to review the gas relations. "They must be formed solely on market principles", he said.

He reminded that now the price of gas for Ukraine is the highest in Europe. "When we speak about our pricing for transit it has not been changed over the last three years. While the price of gas has tripled", he said. Today, said Victor Yushchenko, the losses of Naftogaz due to unaltered transit rates are $3 billion.

He expressed belief in the necessity of transition to a principle of reciprocity in formation of gas prices and prices for its transit through Ukraine.

"There is no doubt that Ukrainian side represented by the Government will make all the payments for gas consumption. But the fines, which Ukraine is to be charged otherwise, are absurd. The gas trade rules should be revised in 2010", he said.

Source: Official website of the President of Ukraine