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Ukraine facing 10 bln cu m gas shortfall in 2006 - ministry

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Ukraine's fuel and energy ministry said Monday the country faces a massive deficit of natural gas this year, and said negotiations are needed with Russia and Turkmenistan to solve the problem.

KIEV, June 19 (RIA Novosti) - Ukraine's fuel and energy ministry said Monday the country faces a massive deficit of natural gas this year, and said negotiations are needed with Russia and Turkmenistan to solve the problem.

Ukraine is largely dependent on the two other former Soviet republics for natural gas. At the beginning of the year it was involved in a bitter pricing spat with Russia that was only resolved when the two countries' leading energy companies reached an agreement after Russia briefly cut supplies.

The ministry said the Ukrainian government should hold urgent negotiations "with the Russian and Turkmen sides to sign contracts on supplies of 10.7 bln cu m of gas to Ukraine in 2006 to ensure the gas balance in the country."

Earlier Monday, the ministry said Fuel and Energy Minister Ivan Plachkov's visit to Turkmenistan had been postponed.

Ukrainian officials also said the country would seek a resumption of direct gas supplies from Turkmenistan.

Rosukrenergo, which was the key company in a deal to end a bitter price row between the former Soviet neighbors early this year, is 50% owned by a subsidiary of Russian energy giant Gazprom, with the other 50% held by Austria's Raiffeisen Investment.

In early January, Russian energy giant Gazprom signed a five-year contract for supplies of 17 billion cu m of Russian natural gas to Ukraine.

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