Russia is Ukraine's leading natural gas supplier but dialogue in the gas sector has been complicated by Gazprom raising natural gas prices to the market level from 2006 and a recent political crisis that befell Russia's neighbor in the past six months.
"The price of additional gas supplies this year will be fixed in a constructive way, with due consideration of strategic prospects of cooperation in Ukraine's gas sector," Gazprom said.
The price of natural gas has been a contentious issue with Russia during West-leading President Viktor Yushchenko's time in office since 2004. It is also an important factor for Ukraine's economy, which is driven largely by the fuel-intensive heavy industry.
Gazprom's Chief Executive Alexei Miller and Ukraine's Fuel and Energy Minister Yuriy Boiko considered Ukraine's gas balance in the first quarter of 2007.
Ukraine currently imports a mixture of Russian and Turkmen natural gas at $95 per 1,000 cubic meters. The price formula is based on a European rate of $230 for Russian gas and $60 for the Central Asian republic's gas. But Gazprom agreed to a 50% price rise to $100 per 1,000 cu m for its supplies from Turkmenistan this week.
During their meeting, Miller and Boiko also highlighted gas pumping by the Ukrainian national oil and gas company Naftogaz Ukrainy into the country's underground storage facilities to provide domestic consumers with uninterrupted gas supplies.
The sides discussed Russian natural gas transit to Europe via Ukraine in the winter of 2006-07, Gazprom said in a news release.
During the price spat with Ukraine in January, Russia briefly cut off gas supplies to Ukraine, and later Gazprom accused Ukraine of siphoning off Europe-bound gas during the halt in supplies. The situation aroused concerns in Europe about Russia's reliability as a gas supplier.
Miller and Boiko agreed that decisions must be based on market principles and respect for all existing agreements on gas supplies and gas transit.
