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Ukrainian delegation set to continue natural gas talks in Moscow

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Ukraine's delegation intends to visit Russia before July 10 to hold talks on natural gas deliveries, Fuel and Energy Minister Ivan Plachkov, who leads the delegation, said Monday.
KIEV, July 3 (RIA Novosti, Olga Bernatskaya) - Ukraine's delegation intends to visit Russia before July 10 to hold talks on natural gas deliveries, Fuel and Energy Minister Ivan Plachkov, who leads the delegation, said Monday.

Earlier, Russian energy giant Gazprom [RTS: GAZP] conceded the possibility of raising the price for gas supplied to Ukraine by export company RosUkrEnergo, in which it holds a 50% stake, for the second half of 2006.

Under an agreement that Russia and Ukraine signed on January 4, Ukraine imports a mixture of Russia's and Turkmenistan's natural gas at $95 per 1,000 cubic meters. The price formula is based on a rate of $230 for Russian gas and $60 for the Central Asian republic's gas.

"During talks with Russia's Gazprom, issues related to the gas balance in Ukraine and gas transit from Central Asia will be discussed," Plachkov told journalists. He added that Ukrainian national energy company Naftogaz's chairman was also in the delegation.

Gazprom confirmed Monday its intention to resume talks with Ukraine next week.

During talks held last week in the capital of Turkmenistan, the country proposed to Ukraine that a contract be signed on gas supplies from Turkmenistan at $100 per 1,000 cu m as of October. Ukraine insists on supplies of 10-12 billion cu m of Turkmen gas on direct contracts in the second half of 2006 at $60 per 1,000 cu m.

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