Ukraine in tough talks with Russia on lower gas price: PM

Ukraine was still negotiating with Russia to amend the natural gas price formula, insisting current fees were too high for its cash-strapped budget even after a sharp discount was agreed five months ago, Ukraine Prime Minister Mykola Azarov said here Wednesday.

"We are conducting such talks. They are complicated. But we have no other choice, because the agreement which former prime minister Yulia Tymoshenko signed and the 450 dollars formula, seen as the basic one, do not reflect the present-day market reality," Azarov told reporters.

"Therefore, we will be looking for arguments. We will continue persuading our Russian partners. I think we will find the right arguments," Azarov added.

Russian President Dmitry Medvedev in April cut Ukraine' s gas price by about 30 percent.

In return, Ukrainian President Viktor Yanukovych agreed to extend Russia's lease on a naval port in the Black Sea untill 2042.

The present 10-year agreement on Russian gas supplies to the Ukraine was signed early in 2009 by the previous Ukrainian administration, which the Yanukovich administration says is ruining the country's economy.

Ukraine paid 5.6 billion dollars for total imports of 26.8 billion cubic metres of Russian gas in 2009 and has agreed to buy 36.5 billion cubic metres in 2010.


【1】 【2】