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Natural gas price for Ukraine to remain at $95 in Q4 - Gazprom

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The price Ukraine pays for a mixture of Russian and Central Asian natural gas will remain unchanged at $95 per 1,000 cubic meters until the end of 2006, the Russian energy giant said Wednesday.
MOSCOW, September 27 (RIA Novosti) - The price Ukraine pays for a mixture of Russian and Central Asian natural gas will remain unchanged at $95 per 1,000 cubic meters until the end of 2006, the Russian energy giant said Wednesday.

Ukraine currently imports a mixture of Russian and Turkmen gas. The price formula is based on a European rate of $230 for Russian gas and $60 for the Central Asian republic's gas.

Following talks between Gazprom chief Alexei Miller and Ukrainian Fuel and Energy Minister Yuriy Boiko, the company said: "To ensure acceptable price conditions, the scheme for gas supplies through the joint venture Rosukrenergo will stay in place."

An official from trading company Rosukrenergo, the focal point of a deal to end a gas price spat between Russia and Ukraine in January, said: "In view of the potential for long-term cooperation with Ukraine, we are ready to deliver gas at this price."

Earlier in September, Gazprom agreed to a 50% price rise, to $100 per 1,000 cubic meters, for its supplies from Turkmenistan.

At the talks with Ukraine, the sides agreed on an annual volume of 55 bln cu m in 2007-2009, which Gazprom considers to be sufficient for the country's needs, the company statement said.

Russia, which holds the world's largest reserves of natural gas, is Ukraine's main gas supplier. The issue of gas deliveries has become vital this year, following a price row in January, when Gazprom raised gas prices to world market levels and cut off supplies to its ex-Soviet neighbor. It later accused Ukraine of siphoning off Europe-bound transit gas.

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