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Ukraine to pay only for gas it consumes

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Published: Sept. 2, 2009 at 12:04 PM
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GDANSK, Poland, Sept. 2 (UPI) -- Ukraine will pay Russian energy monopoly Gazprom only for as much natural gas as it consumes, said Ukrainian Prime Minister Yulia Tymoshenko.

Tymoshenko met with Russian Prime Minister Vladimir Putin in the Polish city of Gdansk on the sidelines of commemorations to honor the 70th anniversary of the outbreak of World War II.

Putin noted the two countries had the potential for better cooperation in energy and several other industrial sectors, including aircraft manufacturing.

The Ukrainian premier, for her part, noted Moscow and Kiev were on the path to improve relations damaged by a January gas row, RIA Novosti reports.

Around 80 percent of all Russian natural gas for its European customers travels through Soviet-era pipelines in Ukraine.

Gazprom in January cut gas supplies to Ukraine following disputes over gas contracts and debt, causing a race to diversify the regional energy sector.

"In my view, we can already say that we have removed all of the gas problems," said Tymoshenko.

Conventional gas contracts obligate the customer to pay for the gas it ordered. Tymoshenko said on her Web site, however, that Kiev would only pay for the gas it consumes.

International lenders came forward recently with a substantial financial aid package to help Kiev cover its gas debts in exchange for reforms in its banking and energy sectors.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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