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Ukraine and Russia Target Long-Term Gas Supply Contracts

Ukraine and Russia Target Long-Term Gas Supply Contracts

30 April 2008

Ukraine and Russia are targeting more than 10-year gas supply contracts, prime ministers of both countries said on Monday. Vladimir Nesterenko: This is not the first time the Ukrainian government has targeted long-term contracts. If both parties succeed in negotiating volumes and a clear-cut pricing mechanism, it would be the most radical improvement in Ukraine-Russia gas relations in the last five years. The major benefit would be removal of a great deal of uncertainty on future gas prices, which in our view has been much more harmful for Ukrainian businesses than the gas price growth itself.

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