Gazprom wants Ukraine parliament to approve transit rental

Ukrainian President Viktor Yanukovych traveled to Moscow on March 4 in anticipation of striking deal for a cheaper natural gas price for Ukrainian industry, the Kommersant-Ukrayina newspaper reported on March 11. In exchange, he expected Gazprom officials to sign a deal on renting Ukraine’s gas transit system. Yet the deal fell through because Gazprom officials want the Ukrainian parliament to amend the nation’s gas transit system law before fixating the rental in a legally binding contract, the newspaper reported, citing anonymous sources in the Ukrainian government and Gazprom. “If Ukraine is able to introduce the necessary changes to legislation before June 1, the gas price can be retroactively lowered starting Jan. 1, 2013 to USD 260 per 1,000 cubic meters,” said the anonymous Gazprom source. The current price paid by the Ukrainian government is USD 426 per 1,000 cubic meters. The Ukrainian government source said the law allows for Gazprom becoming the renter without amendments, but Gazprom insisted on parliament passing legislative changes.