Sergei Kupriyanov told Russian television that Ukraine had failed to make any decision on the issue. He added that with little time remaining before January 1, when the current agreement between Gazprom and Ukraine expires, it was still unclear on what terms Russia would be supplying natural gas to Ukraine and what kind of agreements would regulate the transit of the Russian gas via Ukraine.
Ukraine insists on raising transit fees for natural gas from the current $1.09 to $3.50 per 1,000 cu m per 100 km, which would offset the market gas price defined by Gazprom. Gazprom, which exports its natural gas to Europe via the pipeline network across Ukraine, insists that the country adopt market prices for gas deliveries and sign the relevant contracts by January 1, 2006.
Originally, Gazprom had sought to increase the price Ukraine pays for Russian natural gas from the current $50 under a barter agreement to $160 per 1,000 cubic meters. However, as no agreement could be reached, Gazprom Deputy Chairman Alexander Medvedev said the concern would raise the price to $220-230 per 1,000 cu m, while Chief Executive Alexei Miller suggested that the taps would be turned off on January 1 if a new agreement was not signed.
