"Another round of talks between Gazprom and the Ukrainian delegation brought no result, despite the Ukrainian leadership's assertions to resolve shortly the issues of gas supplies and transit on the basis of market principles," the news release said.
Gazprom has so far 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 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.
Spokesman for the Gazprom board Sergey Kupriyanov said the company had offered Ukraine various options but that the latter was not ready for constructive dialogue or any changes.
In an interview with state-owned TV channel Rossiya, Kupriyanov described Ukraine's position as "absolutely unconstructive" and said it put the energy supplies of European consumers and Ukraine at risk.
"Our Ukrainian colleagues seem to pin their hopes on some secret plan that they might have to remedy the situation at the very last moment," Kupriyanov said.
He said Ukraine had repeatedly stated it was ready for "technical sampling of gas" if no contract were concluded for next year.
"That will in essence mean [gas] siphoning," Kupriyanov said.
On December 2, Ukrainian President Viktor Yushchenko said he was ready to "resolve the problem of Russian gas supplies and transit via Ukrainian territory in an open manner based on market principles." He said Ukraine should resolve the issue in that very manner "in the near future."
"Instead, Ukraine suggested to Gazprom that preferential terms for Russian gas supplies to Ukraine be preserved," Gazprom said. "Referring to the intergovernmental agreement now in effect, [Ukraine] said it was impossible to transfer to market prices and transit fees."
Ukrainian Fuel and Energy Minister Ivan Plachkov said earlier: "Ukraine is not ready to change the terms of gas deliveries for 2006," and will continue to operate "in accordance with the Ukrainian-Russian interstate gas agreement for 2003-2013."
Gazprom said the agreement on additional measures for Russian gas transit via Ukraine, effective October 4, 2001 (until 2013), stipulated that payments for gas transit via Ukraine could be made either in gas or in cash.
Article 2 of the agreement states: "The volumes of Russian gas transit via Ukraine and transit payments in cash and/or in gas will be specified on the basis of annual intergovernmental protocols for a specific period."
In accordance with these annual protocols, Gazprom and Naftogaz are to make relevant amendments to the bilateral transit contract, Gazprom said.
"Therefore, Russia's proposals to lay down a new price for natural gas and new transit fees in the intergovernmental protocol for 2006 in accordance with the current gas prices on the European market do not in any way contradict earlier agreements," Gazprom's news release said.
"Ukraine's position on transferring to international business practice in the gas sector is unsubstantiated, and Gazprom sees no legal reasons for Ukraine not to pay market prices for gas," the statement said.
"Ukraine's unconstructive approach toward the protocol outlining the payment structure for Russian gas transit via Ukraine in 2006 threatens the energy security of European consumers of Russian natural gas, and of Ukraine itself," the news release said.
