Russia may raise gas price for Ukraine official

Iran Materials 19 May 2006 17:20 (UTC +04:00)

(RIA Novosti) - Russia may increase the price of its natural gas supplied to Ukraine, the head of the Russian Gas Association said Friday.

"I believe the Russian gas price of $95 [for 1,000 cu m] is already not the market price for Ukraine and may be revised," said Valery Yazev, whose association promotes itself as the most effective mechanism for coordinating interests in domestic and foreign gas policy, reports Trend


He said the price could be changed due to a possible increase in the price for Turkmen gas, which was taken into account during the signing of the Russian-Ukrainian agreement on gas supplies in January.

Yazev also said the parties that signed this agreement - namely Russia, Ukraine and trading company Rosukrenergo - were not currently involved in talks.

Rosukrenergo, which was the key company in a deal to end a bitter price row between the former Soviet neighbors early this year and is the sole supplier of Russian and Central Asian gas to Ukraine, is 50% owned by a subsidiary of Russian energy giant Gazprom and the other 50% is held by Austria's Raiffeisen Investment.

In early January, Russian energy giant Gazprom signed a five-year contract for supplies of 17 billion cu m of Russia's natural gas to Ukraine.