Ukrainian PM: Progress Has Been Made in Russian Gas Talks

Ukrainian Prime Minister Mykola Azarov has said that some progress has been made in the gas discussion between Ukraine and Russia, even while the country has taken a $3.7 billion loan from China to pay for gas imports.

In a statement on the Ukrainian government pages, the Prime Minister said that talks between the two parties would continue, and continue to progress following a meeting between Russian President Vladimir Putin and Ukrainian President Viktor Yanukovych last week.

"A certain progress was achieved and the specific tasks were given on gas issue at the last meeting of two Presidents," he said. "I've talked about how it is difficult to amend such an unequal treaty. Nevertheless, we will actively work in this direction."

Despite the Prime Ministers tentative encouragement in the progress of the talks, the Ukrainian Ministry of Energy and Coal Industry has confirmed to Bloomberg today that it has agreed to take a loan for $3.7 billion from China to help it pay for gas imports, which largely come from Russia. 

This in addition to a loan already taken from main Russian supplier Gazprom, which supplies Ukraine with 70 per cent of its gas needs. Gazprom said last month that it would loan Ukraine $2 billion to pay for its gas imports from the Russian company, to ensure that supply remained consistent through Ukraine to Europe in cold weather this winter.