Putin: Ukraine gas price must match price for neighboring states

MOSCOW, Apr 8 (PRIME) -- Russia’s 2009 gas contract with Ukraine should be followed strictly, while discounts to the gas price should be used so that Kiev’s price matches prices for neighboring states, President Vladimir Putin said Wednesday at a meeting with gas giant Gazprom’s CEO Alexei Miller.

“You should aim at an absolute and strict following of the 2009 contract. Speaking of discounts, they must be used in a way so that the price for Ukraine matches regional prices, I mean neighboring states,” Putin said.

On April 1, Gazprom and Ukraine’s energy company Naftogaz Ukrainy signed an agreement for April–June gas supplies with the price standing at $247.18 for 1,000 cubic meters, and Russia confirmed extending a gas discount of $100 for 1,000 cubic meters for the period. Energy Minister Alexander Novak said then that without the discount, the price will be at about $348.

Miller said the discount was provided only for the three months as there are risks of a further decrease of oil prices. The size of the discount may be approved only with a peg to a real gas price after the quarter ends.

Putin also supported Miller’s idea to not impose a fine on Naftogaz for the break of the take-or-pay condition in April–June. According to Miller, Ukraine took off over 14 billion cubic meters of gas in 2014, while the obligatory takeoff amounted to 41.6 billion cubic meters.

“It is a very significant difference, and we think that we may support the request made by our Ukrainian colleagues to extend the non-fine regime for the take-or-pay condition to April–June,” Miller said.

“Keeping Ukraine’s difficult economic situation in mind, we have to meet them half-way here,” Putin replied.

Russia has never used and will never use economic methods in solving non-economic issues, Putin added.

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