Ukraine to Slash Russian Gas Purchases

Ukraine will slash its gas purchases from Russia by two-thirds in the next few years, Prime Minister Mykola Azarov said on Tuesday.

"We have fixed a very ambitious goal of cutting gas supplies from Russia by two-thirds in the next few years," Azarov said without precisely specifying the time period.

Ukraine has been seeking a revision of its 2009 gas deal with Russia since last spring, claiming the gas price formula is unfair. The arrangement is tied to the price for gas to the international spot price for oil, which has risen strongly since the deal was signed.

"We are still focused on holding a negotiation process with Russia. I am still a supporter of a normal negotiation process, based on equality and respect so that our partners listen to our arguments. Our arguments are rather serious," Azarov said.

Azarov has earlier told local media that the government was ready to initiate court proceedings against Russia to break the contract.

Last week Russian President Dmitry Medvedev said the contract must be fulfiled but added re-iterated an earlier position that discounts were possible if Kiev joined the Customs Union of Russia, Belarus and Kazakhstan, and agreed on acquisition of its Naftogaz energy company by Gazprom.

Source: RIA Novosti

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