Ukraine-Russia Talks Yield No Gas Resolution

A round of talks between Russian President Vladimir Putin and Ukrainian President Viktor Yanukovych has failed to bring any resolutions to a long-running gas price dispute between Russia's Gazprom and Ukraine's Naftogaz Ukrainy.

The dispute, which concerns the gas prices outlined in a ten-year contract signed between Gazprom and Naftogaz in 2005, continues to be a big issue for Ukraine and its gas consumers. The country, which sells gas to its citizens through state-run Naftogaz at below cost prices, has been pushing to reduce the cost it pays Gazprom for gas. So far, negotiations between both companies has proven ineffective.

Following the meeting yesterday, however, President Putin said that the two countries had agreed to accelerate discussions between the two countries.

"We have agreed to add momentum to...[the talks between] Gazprom and Naftogaz so that all options for improving their relationships are considered," Platts reports him as saying yesterday evening.

On Wednesday, Ukrainian President Viktor Yanukovych said that concluding the matter of gas prices between the two countries was a matter of priority, a situation he felt could be improved by the development of a gas transport system between Russia, Ukraine and the EU. This consortium would deal with the modernising of Ukraine's gas transport system (GTS)  which needs heavy investment to be improved.

"The creation of a gas transport consortium will definitely improve the relations between Ukraine and Russia in the gas sphere," he said.