Bloomberg News

Ukraine Expects Revised Gas Deal in Days, Prime Minister Says

October 19, 2011

Oct. 19 (Bloomberg) -- Ukraine’s Prime Minister Mykola Azarov said he expects the 2009 gas contract between Russia and Ukraine to be revised “within a few days” after meeting yesterday with counterpart Vladimir Putin.

“The talks are nearing the end,” Azarov said in a statement today on the government website. “In a few days we will be able to approve a compromise.” Putin and Azarov met in St. Petersburg, Russia.

Ukraine is seeking to revise the terms of gas-supply and transit contracts with Russia to help unlock the next tranche of a loan from the International Monetary Fund. Ukrainian President Viktor Yanukovych seeks to cut the price to $230 per 1,000 cubic meters from next year’s expected average level of $415.

Azarov and Putin discussed the possibility that Ukraine make payments for imported gas in Russian rubles, according to the Ukrainian government statement. NAK Naftogaz Ukrainy, Ukraine’s state-run energy company, paid more than $867 million to Russia for September gas deliveries.

--Editors: Rachel Graham, Rob Verdonck

To contact the reporters on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net;

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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