Kiev's negotiations with Moscow on paying less for Russian natural gas are going well and may be concluded late this week or early next week, Ukrainian First Deputy Prime Minister Andriy Klyuyev said on Thursday.
Ukraine's new leadership is seeking to revise a long-term gas deal between Russia and Ukraine, which increased the price Ukraine paid for Russian gas, straining the country's troubled finances.
"We deliberately delayed the process of the budget adoption to conclude the negotiation process with our Russian colleagues," Klyuyev said
Ukraine paid $305 per 1,000 cu m for Russian natural gas supplies in the first quarter of 2010 but will have to pay $320-330 in the second quarter according to the price formula fixed in the deal, under which Kiev pays market price for Russian gas after years of special rates.
Klyuyev said the Ukrainian economy was able to cope with high gas prices last year due to a 20% discount offered by Russia and large gas reserves in its underground storage facilities. The discount expired at the end of 2009 and the deputy prime minister said the current gas prices were ruinous for the national economy.
KIEV, April 15 (RIA Novosti)
