Monday, January 19, 2009

Sokolovsky explains Ukraine's position in gas talks with Russia

President's Representative on Energy Security Bohdan Sokolovsky informed the media at his today's press briefing that Ukrainian-Russian talks on supplies of Russian gas to Ukraine and its transit are still going on.

Bohdan Sokolovsky also explained Ukraine's position in these talks.

According to him first of all Ukraine considers important observing agreements that were reached between Ukraine and Russia at the level of two countries' Presidents, Prime Ministers and energy companies in 2008. According to these agreements prices for gas for Ukraine and transit fees were to be formed symmetrically.

Also Ukraine would consider rational using formulas that are applied to European countries that consume and transit Russian gas, when negotiating basic gas price and transit fees with Russian side.

With regard to tendencies at European energy markets, particularly to calculation of prices for gas and transit fees it would be reasonable and economically substantiated to use netback principle to calculate gas price for Ukraine.

Beside that in view of unique qualities and functions of Ukrainian gas transit system for European gas market Ukrainian side considers appropriate to recalculate gas transit fees beginning from 2009 to level them with transit fees charged by other European states.

Symmetrical and synchronous reduction of price for gas ant transit fees beginning from 2009 would correspond with Ukrainian-Russian strategic partnership and the agreements reached in 2008 at the level of Presidents of the two countries and at corporate level.