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Home >> Business
UPDATED: 11:02, December 31, 2005
Russia's ultimatum in gas talks unacceptable: Yushchenko
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Ukrainian President Viktor Yushchenko said on Friday that Russia's imposition of price terms during the two countries' gas talks smacks of an ultimatum and is unacceptable.

Ukraine does not need an ultimatum, or political and economic pressure, said Yushchenko in a televised interview on Friday evening after the two countries' talks on gas price.

According to the Ukrainian president, Russia insists that his country pay the world market price for its natural gas, which means 230 U.S. dollars per 1,000 cubic meters instead of the 50 dollars it pays now.

It also suggested that Ukraine raise accordingly the transit fee from Russian gas which goes to Europe through a Ukrainian pipeline to 1.75 dollars per 1,000 cubic meters per 100 km.

Ukraine regards the terms as unacceptable after serious consideration, Yushchenko said, arguing that the "objective" price for the Russian gas in Ukraine now is 75 to 80 dollars.

Yushchenko also said Ukraine has already reached an agreement with Turkmenistan, under which Turkmenistan is to supply to Kiev 40 billion cubic meters of gas a year at a price of 50 dollars per 1,000 cubic meters. The supply will account for more than half of Ukraine's yearly consumption and thus spare Ukraine any possible shortage of natural gas.

At present, Ukraine relies on Russia for about a third of its gas and Turkmenistan for 45 percent.

Regarding the issue of Russia's Black Sea fleet at the Sevastopol base in Ukraine, Yushchenko said his country should take Russia as a friendly country and avoid conflicts with it. He added that it is unwise for some Ukrainian politicians to demand a reconsideration of the fleet issue.

Yushchenko reiterated that Ukraine will stick to the 1997 agreement with Russia, according to which Russia would pay Ukraine 98 million dollars every year to use the Sevastopol base until 2017.

Source: Xinhua


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