KIEV, Ukraine, Dec. 6 (UPI) -- Russia's Gazprom signed a deal to provide natural gas to Ukraine at a price of $179.50 per 1,000 cubic meters.
The agreement was signed Wednesday by Yuri Boiko, Ukraine's acting minister of Fuel and Energy, and Alexei Miller, Gazprom's chief executive officer.
"This price, given the tough competition on world markets of fuels, is comfortable for us, especially if compared with our neighbors' gas prices," Boiko said.
Ukrainian officials had hoped the price wouldn't top $160 per 1,000 cu. m. Gas prices have increased three-fold in the past two years, while transit price has only increased by 6 percent, according to Russian news agency Itar-Tass.
The rate of the transit fee Russia will pay Ukraine for transiting natural gas will be set at $1.7 for each 1,000 cu. m. moved 100 kilometers. Ukraine will pay the same fee for getting gas across Russian territory, Gazprom said.
Most of the gas Ukraine consumes is from Turkmenistan. This year, Russia paid $100 per 1,000 cu. m. Under an agreement between Gazprom and Turkmenistan, the price will go up to $130 per 1,000 cu. m. in the first half of 2008, and $150 in the second half.
