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Ukraine stance on gas threatens Europe energy security - Gazprom

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MOSCOW, December 6 (RIA Novosti) - Russian natural gas monopoly Gazprom said Tuesday that Ukraine's "unconstructive approach" to gas supplies and deliveries for 2006 was placing the energy security of European natural gas consumers at risk.

"Ukraine's unconstructive approach to the protocol outlining the payment structure for Russian gas transit via its territory in 2006 threatens the energy security of European consumers of Russian natural gas and of Ukraine itself," said a Gazprom news release following failed talks with Ukrainian delegates.

Gazprom Deputy Chairman Alexander Ryazanov said last week that the company was ready for a deal on Russian gas transit via Ukraine.

For the past five years, Gazprom supplied natural gas to Ukraine under a barter agreement for an estimated $50-$60 per 1,000 cu m. During that time, European gas prices nearly doubled, and Gazprom decided to review its price structure for Ukraine and establish a market price of $160 per 1,000 cu m. Ukraine said it would agree to the move if Gazprom paid transit fees of $3.5 per 1,000 cu m per 100 km. Gazprom said it was ready to raise the figure to $1.5-$1.75 against the current $1.09.

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