Naftogaz talks gas prices, Gazprom balks

KIEV, Ukraine, Nov. 30 (UPI) -- Russian energy giant Gazprom has not responded to a request to revise the pricing mechanism for Ukraine's gas, officials at Ukrainian utility Naftogaz said.

Oleg Dubina, the chief executive of Naftogaz, and Gazprom chief Alexei Miller met last week to discuss amendments to a January gas contract.

Gazprom cut gas supplies briefly to Ukraine in January following a dispute over gas contracts and debt. The contract settling that dispute placed strict conditions on Kiev in terms of gas payments and volumes.

The energy executives agreed to review the pricing terms each fiscal quarter and make appropriate adjustments based on market conditions.

Gazprom officials said they could charge $280 per 1,000 cubic meters of gas for 2010. Dubina, however, said he was looking for better terms, Ukraine's official news agency Ukrinform reports.

"We believe that the formula for the calculation of the cost of gas, envisaged by the contract between Naftogaz of Ukraine and Gazprom, may be revised and corrected for optimization of the price of gas for Ukraine," he said.

Dubina added it could be at least another week before all gas terms are finalized as Gazprom has yet to respond to his queries.