Itar-Tass citing Mr Alexei Miller CEO of Gazprom as saying that a union of Russian Gazprom and Neftegaz Ukrainy will make it possible to sell gas to Ukrainian consumers at Russian domestic prices.

He said after a meeting with Ukrainian Fuel and Energy Minister Mr Yuri Boiko that “We think that Ukrainian consumers can get Russian gas at Russian domestic prices in this case.”

Mr Miller said he implied the price of RUB 1,880 per 1,000 cubic meters.

A Gazprom representative said in comment on the Mr Miller Boiko meeting that negotiations between Russian Gazprom and Neftegaz Ukrainy on the possible establishment of a joint venture have advanced.

Gazprom said Mr Miller and Mr Boiko discussed the fulfillment of long-term gas delivery and transit contracts and prospects for cooperation in 2011. It said the interlocutors paid special attention to the possible establishment of a joint venture.

They also discussed assets the corporations might allot for the joint venture. The company said “The sides confirmed an advancement of the joint venture negotiations.”

Mr Nikolai Azarov Ukrainian Prime Minister recently said that Kiev would insist on reviewing gas agreements with Russia. He said that “We wish to review the extremely disadvantageous agreement with Russia, and we will be insistent in our wish.”

In the opinion of Mr Azarov gas deliveries on prices that change from one quarter to another are ‘oppressive terms. Mr Azarov said Ukraine was paying USD 330 per 1,000 cubic meters of gas in the first quarter of this year and the price would exceed USD 390 per 1,000 cubic meters in the fourth quarter.

He said that “This price will lead to an economic catastrophe in Ukraine. The price was lessened by USD 100 per 1,000 cubic meters thanks to the agreement Gazprom and Neftegaz Ukrainy signed in April to define terms of gas delivery to Ukraine and gas transit to Europe in 2009-2019. The deal helped Ukraine make both ends meet.”

(Sourced from Itar-Tass)