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Moscow-Kiev talks on gas supplies in 2008: preliminary agreement was reached


Ukraine has signaled it will be content with a Russian natural gas price of $160 per 1,000 cubic meters, a top manager of Russian energy giant Gazprom said on Friday.

Alexander Medvedev, a deputy chairman of Gazprom`s management committee, told state English-language TV channel Russia Today that a preliminary agreement was reached with Kiev at talks on Russian natural gas supplies in 2008.

"The debt issue has been solved, and we have achieved considerable progress at talks on pricing mechanisms for Ukraine," Medvedev said.

Asked whether Gazprom was satisfied with a price of $160 per 1,000 cu m, he replied: "the most important thing is that this price suits Ukraine."

He said a gas deal will be signed well before the end of this year. "Not December 31. Much earlier," he said.

Gazprom set an official price for Russian natural gas supplies to Ukraine at $230 per 1,000 cu m from the start of 2006. However, Ukraine paid an average of $95 per 1,000 cu m for the mixture of Central Asian and Russian gas supplied at the border.

After Turkmenistan hiked its gas price, the rate for Ukraine was raised to $130 per 1,000 cu m from January 1, 2007.

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