Ukraine Sees End to Russian Gas Dispute by End of Year

Deputy secretary of the Ukrainian Defence Council Nestor Shufrych has said that the country expects to reach a resolution in the Russia-Ukraine gas dispute by the end of 2012.

The deputy secretary said that the two countries were talking the issues out at the moment in a constructive and professional way and as such was nearing a resolution to a dispute on gas pricing that has been an issue for several years.

"We are maintaining a pragmatic, businesslike, and friendly negotiating process with the Russian Federation today," the Kyiv Post reports the official as saying. "We hope to settle the most complicated issue concerning our relations in the gas field and supplies of Russian gas to Ukrainian territory by the end of the year."

Russia and Ukraine have been conducting talks on this particular pricing issue since last year without, so far, any significant progress being made. Ukraine, which is heavily reliant on Russian major Gazprom for gas supply, has been negotiating to reduce the prices charged to it by the company.

Gazprom in June loaned Ukraine $2 billion to pay for gas supplies throughout the winter following a shortage in European supply in February this year. Gazprom said that Ukraine had offloaded more gas than it was entitled to during the cold snap, a charge Ukraine has strenuously denied.