UPDATE2: Min: Ukraine wants gas talks with Russia, EU

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WASHINGTON/KIEV/ST.PETERSBURG, Apr 1 (PRIME) -- Ukraine believes it is necessary to hold talks over gas supplies with Russia and the European Commission, Energy and Coal Industry Minister Vladimir Demchishin told PRIME in an interview on Friday.

“I have recently talked to Russian Energy Minister Alexander Novak about trilateral talks with the European Commission. He said he would think about when they could be held. There is no timeline yet, but we understand that such talks are necessary and are ready to hold them any time,” he said.

Ukraine is “very comfortable with working in a trilateral format” and is waiting for Russia’s response, Demchishin said.

He also said that Kiev is ready to buy Russian gas at a market price.

“If Gazprom offers us a market price, we do not have a political task not to agree to it,” he said.

“In my view, the market price is currently significantly lower than U.S. $180 per 1,000 cubic meters.”

The price of Russian gas for Ukraine amounts to $185 per 1,000 cubic meters starting from Friday, while Naftogaz Ukrainy can buy gas in Europe at the price of around $170 per 1,000 cubic meters, Demchishin said.

Naftogaz Ukrainy said late Thursday it would not resume purchases of Russian gas on Friday due to the unfavorable price.

Ukraine’s gas reserves currently exceed 1 trillion cubic meters, and the country’s gas production will be growing, Demchishin also said.

“We currently ensure 60% of our gas demands. And we will increase the production,” he said.

Naftogaz Ukrainy CEO Andrei Kobolev told Ukrainian magazine Focus that Ukraine is able to cope without Russian gas purchases for a whole year.

“We are already quite able now to cope without Russian gas for an entire year. Everything depends on the price. Gas is cheaper now through reverse, and we buy it via this scheme. If Gazprom offers a lower price, we will buy from it. This is not a political issue, but of economic feasibility,” he said.

Novak said that Moscow had not received any official invitations from Kiev and the E.U. to hold trilateral gas talks and sees no need in them, as gas prices have decreased.

“Our position is simple – gas prices have fallen now. The contract price of Russian gas for Ukraine (in the second quarter) is competitive, there is no need to provide a discount now, sign some additional agreements. The contract is valid until 2019. Due to fallen oil prices, gas prices are very low,” he said.

Novak also said the price of Russian gas supplies for Ukraine is less than $180 per 1,000 cubic meters in April–June.

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