Russian, Ukrainian primer ministers to hold talks in Moscow focusing on energy
By APThursday, March 25, 2010
Ukraine PM seeks cheaper gas, close ties in Moscow
MOSCOW — Ukraine’s prime minister is expected to bargain for lower prices on natural gas imports and seek closer diplomatic ties when he meets with Russian premier Vladimir Putin on Thursday.
Mykola Azarov’s trip is part of an effort by Ukraine’s newly elected president Viktor Yanukovich to review a deal made last year with Russia on the price of energy and to break with his predecessor’s pro-Western politics. Azarov said before heading to Moscow that he and Putin would also discuss a broad range of other economic issues.
The January 2009 agreement ended a pricing dispute that saw Russian state-controlled Gazprom gas monopoly cut supplies to EU nations through Ukraine for two weeks. Europe gets around 20 percent of its gas from Russia, most of it via pipelines that cross Ukraine.
Yanukovych said Tuesday that he would like Russia and Ukraine to sign a new gas deal during the Russian president’s visit to Ukraine in May. He said that the 2009 deal that obliged Ukraine to pay European gas prices was too heavy a burden for the nation which has been hit severely by the global financial crisis.
Yanukovych signaled during his election campaign that he could repay the favor by offering Russia a stake in Ukraine’s pipeline network. He has also promised to improve ties with Russia that worsened under his pro-Western predecessor, who sought to take Ukraine into NATO and the European Union.
Russian officials have said, however, that they see no reason to review the gas deal. Talks between Russian and Ukrainian gas executives earlier this week have brought no visible results.
The business daily Kommersant said Thursday that Russian officials are seeking more concessions from Ukraine, including a revision of some privatization deals of the past few years.
