10 Nov 2010 15:19

Ukrainian premier again criticizes price formula for Russian gas

KYIV. Nov 10 (Interfax) - The formula used to calculate the price Ukraine pays for Russian natural gas is not consistent with the current market trends, Ukrainian Prime Minister Mykola Azarov said at a Ukrainian government meeting on Wednesday in outlining results of his recent trip to Vienna and a meeting with OPEC Secretary-General Abdallah Salem el-Badri.

"By the way, Mr. el-Badri said authoritatively that the gas market has undergone significant changes in the past years. The prices for oil and gas are no longer associated in the world, because significant amounts of shale gas and alternative energy sources have been discovered. Therefore, the formula for defining the price for Russian gas for Ukraine no longer meets the market trends," he said.

Ukraine has been and will be a reliable partner for Russia and the European Union in transporting gas, Azarov said. Russia's and the EU's involvement in modernizing the Ukrainian gas transportation system will help bolster long-term guarantees of gas transportation, he said.

"All parties concerned have the chance to enhance the level of guarantees for a long term if the European Union, Ukraine, and Russia conclude a tripartite agreement on gas transportation," he said.