24 Oct 2011 11:10

Not possible to cut Ukraine gas-transit tariff to cost - Gazprom

ST. PETERSBURG. Oct 24 (Interfax) - Russian gas giant Gazprom is rejecting the possibility of reducing the tariff for gas transiting Ukraine to the production cost level.

"That is inconceivable. I don't think it makes sense," deputy Gazprom chief Valery Golubev said in response to a reporter's question as to that possibility on Saturday. "Honestly, I have not officially seen any such proposals [or] initiatives from our Ukrainian colleagues," he said.

Gazprom and Ukraine have a contract good until 2019 "that describes everything correctly and fairly," Golubev said. "Any enterprise should make revenue, so lowering the transit tariff to the level of production cost is just not sensible," he said.