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Russian minister to discuss energy issues with Ukraine

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MOSCOW, November 13 (RIA Novosti) - Russian Industry and Energy Minister Viktor Khristenko is starting his official visit to Ukraine Monday to discuss energy issues, the ministry said Sunday.

Khristenko will meet with Ukrainian Fuel and Energy Minister Ivan Plachkov and the management of the state-owned Naftogaz Ukrainy energy company to discuss oil, gas and electricity issues. He will also meet with the Ukrainian prime minister and participate in the session of the gas consortium to build the Bogorodchany-Uzhgorod gas pipeline.

Khristenko is also expected to discuss the results of a meeting between Russian natural gas monopoly Gazprom and Naftogaz held last Thursday.

Ukraine insists on keeping unchanged the terms of Russian natural gas transit and supplies in 2006. "The talks have failed so far. Despite the earlier agreements reached at the top level on the transition to gas payments with cash at prices corresponding to the European tariffs, the Ukrainian side wants the payment terms to remain at the 2005 level, a Russian official said.

The price of Russian natural gas has been unchanged at $50 per 1,000 cubic meters for Ukraine in the past five years compared to the base price of $80. Over this period, the price of gas in Europe went up almost twofold. The market gas price for Ukraine, calculated by the net back method (the gas price on the main sales market minus transportation costs), is $160 per 1,000 cubic meters.

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