Ukraine Pulls Out of Gas Summit With Russia

A summit on gas prices between Ukraine and Russia was postponed Tuesday after the Ukrainian president withdrew, causing fears of further disputes affecting supplies to western Europe. 

Newsagencies reported that Russian leader Vladimir Putin was prepared for the meeting, but Victor Yanukovich of Ukraine pulled out, citing more time needed to prepare documents.

The postponement revived memories of disputes between the two countries that led to reductions in the supply of Russian gas to Europe through Ukraine's pipeline network in 2006 and 2009. Ukraine is a vital transit route for Russian gas.

 A Kremlin foreign policy aide was quoted as saying Yanukovich had postponed the talks because more time was needed to prepare documents they had planned to sign.

"Yanukovich had planned to visit today and it has been decided to delay this visit," Yury Ushakov said. "It is necessary to conduct additional expert work to complete all the documents which we had initially planned to sign."

Putin is due to meet European Union leaders in Brussels on Friday, and energy is likely to be high on the agenda.

Cuts to European gas supply transiting Ukraine during earlier disputes exacted a cost for both countries, prompting Europe to step up an energy security agenda, including reduction of transit risk and diversification of supply away from Russia.

Russia's gas export monopoly Gazprom, an important contributor to the Russian state budget, depends on European exports for the majority of its revenues, while Ukraine depends on transit fees from Russia to fill its state coffers.

Kiev says the price of $430 (€3250) per 1,000 cubic metres it is paying this quarter is too high, but has balked at demands for big concessions to Moscow to achieve a reduction.

See also: Gazprom and Ukraine Have Talks on Supply