Ukrainian Prime Minister Viktor Yanukovich (left) and Russian Prime Minister Mikhail Fradkov
Photo: www.photoxpress.ru
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Yanukovich Asks for His Share of the Production
Negotiations between Russian Prime Minister Mikhail Fradkov and Ukrainian Prime Minister Viktor Yanukovich on the price of Russian natural gas for Ukraine the last quarter of this year and next three years have ended without result. Nonetheless, the friendliness between the two officials obviously remains. Russian President received the Ukrainian prime minister after his arrival in Moscow late Thursday evening. Yanukovich met with Fradkov the next morning and Gazprom head Alexey Miller later the same day.
Gazprom would experience a loss if Russia maintained the current $95 per 1000 cubic meters price of gas for Ukraine. A high-placed Kommersant source in Gazprom said that the volume of future supplies has been agreed on, and negotiations on prices will continue next week. That source also said that Ukraine must pay no less than $135 per 1000 cu. m. in 2007 for Russia to break even, and the price of $145 per 1000 cu. m. is being discussed.
It seems that the price of gas is not the main interest of Russian authorities in the negotiations, however. “We would like to participate more actively in metallurgy, high technology and the processing industry [in Ukraine],” Fradkov stated at the press conference after the negotiations. The standoff between Russia and Ukraine over Krivorozhstal was the main business issue in the Orange Revolution. That company is now controlled by Mittal Steel. There is more metal in Ukraine, however. Millenium Capital analyst Olga Ivanchuk in Kiev says that Russia is interested in the Ukrainian titanium sector. Rosoboroneksport, the state arms trader, threatened earlier to give up Ukrainian titanium in favor of Kazakh sources of the metal after a conflict with Ukraine.
The main question Yanukovich posed in the negotiations concerned Ukrainian access to natural gas deposits in Russia. He did not receive an answer to that question. Belarusian President Alexander Lukashenko's interest in the same topic was deflected earlier this year.
www.kommersant.com
All the Article in Russian as of Sep. 25, 2006
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