The price of natural gas supplied to Ukraine may be halved from next year to about $224 per 1,000 cu m, if the parties come to terms during ongoing bilateral talks, the Ukrainian government's envoy for cooperation with Russia, Valery Muntiyan, said on Wednesday.
"It will be about $224, but we need an even lower level as our loss point (for Naftogaz) is $205," Muntiyan told RIA Novosti.
In the fourth quarter of 2011, Ukraine pays $400 per 1,000 cu m for Russian natural gas.
Ukraine has long been seeking to alter the terms of the 2009 gas deal it signed with Russia. The deal ties the price of gas to oil prices, which have risen strongly since 2009, boosting Ukraine's gas bill. The contract says Ukraine must import no less than 33 billion cubic meters of gas from Russia.
Kiev insists on reducing both the price and the volume of gas imports.
Ukrainian Economic Development and Trade Minister Andrei Klyuyev said that the gas price for Kiev will be $456 per 1,000 cu m in the first quarter of 2012, if the two countries find no compromise at the talks this year.
Gazprom CEO Alexei Miller announced earlier this week, however, that "no New Year presents" should be expected in bilateral talks on the reduction of the price for Russian natural gas.
Muntiyan also confirmed media reports that Moscow and Kiev were discussing setting up two joint ventures between Gazprom and Naftogaz, which could gain control of the Ukrainian gas transportation system and the local gas distribution network.
Kommersant business daily reported on Tuesday that Gazprom might lower the gas price for Ukraine to $210-220 per 1,000 cu m if Kiev sold part of its gas transportation system to Moscow.
Muntiyan added, however, that he did not consider this the best option for Ukraine.
"From my point of view, I would rather search for other ways, including integration, but would not give up the [gas] system. It is like giving away your finger," Muntiyan said.
Russia annually pumps about 100 billion cubic meters of gas to European countries via Ukraine, which makes up 80 percent of its total gas supplies to Europe.
