Ukraine, russia gas talks to continue-deputy pm

Published in Reuters

Ukraine will continue to discuss gas issues with Russia following last week's meeting between the two country's prime ministers, Ukraine's deputy Prime Minister Hryhory Nemyrya said.

Ukraine's prime minister Yulia Tymoshenko held meetings last week in Moscow with Russian Prime Minister Viktor Zubkov and Russian energy company Gazprom (GAZP.MM: Quote, Profile, Research) but the two countries have failed to clarify details of the agreement.

"It was a very productive visit," Nemyrya told a roundtable of academics late on Monday, adding: "the problem is so serious, who can realistically think it will take one visit to fix?"

The talks came after Ukrainian President Viktor Yushchenko met Russian leader Vladimir Putin earlier this month and clinched a last-minute deal to settle payment of Ukrainian arrears for gas supplies and, over time, to eliminate gas intermediaries.

Nemyrya said a further meeting would take place in April, this time in Kiev, which Tymoshenko has invited a Russian government delegation to attend.

With gas prices close to record highs, rows between Ukraine and Russia, which supplies a quarter of Europe's gas needs largely via Ukraine, have aroused widespread concern, particularly after a previous dispute disrupted exports to European Union countries in January 2006.

"We should cooperate with Russia, the EU and central Asia in finding complementary ways to contribute to the diversification challenge," Nemyrya told Reuters after the roundtable.

"The era of cheap gas is over."