No breakthrough in Russia-Ukraine gas talks

Dec 21, 2011, 10:49 GMT

Moscow/Kiev - A midnight meeting between Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Mykola Azarov to resolve a natural gas pricing dispute failed to produce a breakthrough, officials said Wednesday.

Deliveries to Europe would continue unaffected, they added.

Talks between Azarov and Putin in Moscow ended at 2 am Wednesday morning (2200 GMT Tuesday) with no agreement over a Ukrainian claim that it pays too much for Russian gas, and that Moscow should agree to a price cut.

Russian President Dmitry Medvedev and Ukrainian President had discussed the issue in Moscow on Tuesday. Both would 'instruct their governments to resolve this question quickly,' a post-meeting joint statement said.

Disputes between Russia and Ukraine over natural gas pricing have interrupted Russian natural gas deliveries to Europe twice, in 2006 and 2009. More than half of all Russian natural gas sold in Europe reaches market via pipelines crossing Ukraine.

Talks between senior Ukrainian and Russian government representatives would continue and volumes of Russian natural gas deliveries to Europe would remain constant, a statement from Putin's administration said.

Azarov in comments to Ukraine's Kommersant magazine called the gas negotiations 'extremely difficult ... but something we will resolve.'

Ukrainian officials have said a gas import contract signed with Moscow in 2009 obliges Kiev to purchase more fuel than it needs from Russia at prices sometimes substantially higher than market rates.

Russian officials have said the price of gas sold to Ukraine is fair and that the 20-year contract should remain in effect.

If Kiev wants a price cut, it should agree to sell some or all of its natural gas transportation network to the Russian natural gas monopoly Gazprom, Kremlin officials have said.

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