Ukraine Seeks Gas Price Revision to $230

Ukraine is seeking a revised price of $230 per 1,000 cubic meters for its long-tern gas contracts with Russia.

Yevhen Bakulin, head of state owned Naftogaz Ukrayiny, made the comment on Monday in an television interview.

Ukraine earlier said the gas price of $354 per 1,000 cubic meters as set for the third quarter of 2011 is too high and should be reduced to $200.

The price of $230 would be "good, and quite fair," Bakulin said

Ukrainian Foreign Minister Kostyantyn Hryshchenko said earlier in the day that Kiev would not join the Moscow-led Customs Union of Russia, Belarus and Kazakhstan, a condition for discounts on Russian gas prices.

Last week, Russian President Dmitry Medvedev said Ukraine might get discounts for gas if it joined the Customs Union and if Ukraine's state owned Naftogaz was merged with Russia's Gazprom.

Ukraine's President Viktor Yanukovich has earlier re-iterated that Ukraine was not considering the issue of merger between Naftogaz and Gazprom at all.

Yanukovich said that Ukraine would not yield to any pressures on this matter during gas talks, as it was "humiliating."

Source: RIA Novosti