2 October 2006 -- Russia agreed to keep prices of natural gas it supplies to Ukraine unchanged at $95 per 1,000 cubic meter through the rest of the year. The agreement followed two months of talks and ends uncertainty caused by Russian suggestions that Ukraine pay at least $135 per 1,000 cubic meter starting this month due to a recent hike in Turkmen gas prices.
Russia also acted to reduce the amount of gas it will supply to Ukraine during the next three years, suggesting that Ukraine will not be able to resume re-exports of gas to Europe. The deal leaves RosUkrEnergo, a controversial Swiss-based gas trader controlled by Russia's Gazprom, as the only supplier of gas to Ukraine during the next three years.
RosUkrEnergo currently buys Turkmen gas at $65 per 1,000 cubic meters and delivers it to Ukraine via pipelines in Uzbekistan, Kazakhstan and Russia. Turkmenistan recently increased the price to $100 per 1,000 cubic meters for gas shipments starting in October.
Gazprom promised to supply 55 billion cubic meters of gas to Ukraine annually in 2007-2009, down from the 62 billion that had earlier been promised. The latest supply volumes show that Ukraine will import only enough gas for domestic use, but will not be enough to restart re-exports of gas as it had hoped earlier this year.
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