Boyko Optimistic on Gas Price.

Yury Boyko, energy minister, said Ukraine’s gas import price would not increase this year despite Russia’s agreement to give a $35/tcm price increase to Turkmenistan. Boyko said the price would be held steady this year and increase only “insignificantly” next year thanks to an unexplained “agreement in principle” reached last month during Prime Minister Viktor Yanukovich’s visit to Russia. Boyko talked vaguely about “ten factors” that influence Ukraine’s gas price, hinting that Yanukovich hopes to keep the price down by offering concessions to Russia. Boyko’s optimism contrasts with the government’s official forecast of the 2007 gas import price, which is $135/tcm at the Ukraine-Russia border, up $40 from the current level. Vladimir Nesterenko: We think the official forecast is more realistic. Look for our analyst’s notebook on the Turkmen gas price increase to be issued shortly.