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No Talks on ‘Assets for Gas’ Deal with Russia, Says Ukrainian Minister

© RIA Novosti . Vladimir Fedorenko / Go to the mediabankYury Boyko
Yury Boyko  - Sputnik International
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Kiev and Moscow are not discussing the sale of Ukrainian state assets to Russia as part of a future gas deal, Ukrainian Energy Minister Yury Boyko said on Saturday.

Kiev and Moscow are not discussing the sale of Ukrainian state assets to Russia as part of a future gas deal, Ukrainian Energy Minister Yury Boyko said on Saturday.

“We have never considered [the sale of] such factories or assets as compensation, as other countries or companies, which have integrated with [Russian energy monopoly] Gazprom, have done,” Boyko said in an interview with Ukraine’s Inter TV channel.

“The demands of the Russian side only touch upon professional operation of the gas transportation system and domestic market operation conditions such as [gas] volumes, prices and so on,” the minister said.

Ukraine has long been seeking to alter the terms of the 2009 gas deal it signed with Russia. The deal ties the price of gas to oil prices, which have risen strongly since 2009, boosting Ukraine's gas bill. Kiev insists on reducing both the price and volume of its gas imports.

A regular round of Russian-Ukrainian gas talks took place in Moscow earlier this week. The sides described the meeting as “constructive,” but no details have been reported.

Ukrainian media have quoted sources as saying Russia has demanded that some of Ukrainian state assets, particularly the Ukrainian Railways company, are sold to Moscow in exchange for gas price discount.

Boyko said on Saturday Ukraine was planning to further cut Russian gas supplies starting from 2013.

“If gas becomes cheaper, we will buy more, if no – we will cut [gas] consumption each year,” he said, adding “we have levers allowing us to avoid sanctions” for failing to purchase the volume of gas stipulated in the 2009 agreement with Russia.

Last week, Boyko said Ukraine was seeking to cut Russian gas imports to 27 bln cu m from the agreed 52 bcm.

The bilateral contract on gas purchases in 2009-2019 signed between Gazprom and Naftogaz Ukraina does not stipulate unilateral changes in gas purchase volumes.

 

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