Russia's energy minister on Tuesday firmly denied reports that Moscow was ready to compromise with Ukraine on demands that it more than quadruple the price it pays for &to=http://english.pravda.ru/main/18/89/356/16611_Ukraine.html' target=_blank>Russian gas, a dispute that threatens to cut off about a third of the gas that the country of 48 million relies on for heat and industry.
The statement by Viktor Khristenko came hours after Ukraine's energy minister claimed that a compromise had been reached in the tense, politically charged dispute.
President Vladimir Putin and Ukrainian President Viktor Yushchenko spoke by telephone Tuesday evening, Russian news agencies cited the Kremlin press service as saying. The reports said only that "bilateral relations" were discussed in the call that was made at Yushchenko's initiative, but the gas dispute was likely to have been at the top of the agenda.
About a third of Ukraine's natural gas comes from Russia and Ukrainian officials say jacking the price up from the current US$50 (Ђ42) per 1,000 cubic meters could cripple Ukraine's energy-intensive heavy industry and impede the country's efforts to boost its economy. Russia's state-controlled Gazprom gas monopoly argues that Ukraine should pay US$220-230 (Ђ186-194), more in line with world prices and portrays the demand as putting the gas sphere in line with market-economy demands.
&to=http://english.pravda.ru/main/18/89/357/15822_gas.html' target=_blank>Ukraine doesn't argue with the market-economy theory but is asking for the price increases to be phased in over a period of five years.
However, Khristenko, in remarks shown on state-controlled Channel One television, said "no other offers will be made."
Gazprom says it is prepared to shut off gas to Ukraine on Jan. 1 if an agreement isn't reached. Officials in both countries have raised the prospect of sending the issue to the Arbitration Institute in Stockholm, Sweden, which both sides recognize as a neutral body for resolving trade disputes. But the institute cannot undertake the case unless both parties request it.
Earlier Tuesday, Ukrainian Energy Minister Ivan Plachkov said at a round-table discussion that an agreement had been reached for a gradual phase-in of gas price increases, his spokeswoman Lilya Klochko said. However, a Gazprom spokesman quickly denied that any agreement had been reached and Plachkov's office could not be reached later for clarification.
Despite Russia's arguments that market forces demand the price increase, Gazprom is charging significantly less to some ex-Soviet countries. On Tuesday, the company reached agreement to sell gas to Belarus for US$46.68 (about Ђ37) per 1,000 cubic meters _ just 20 percent of what it wants Ukraine to pay.
Belarus is closely allied to Moscow, while Ukraine's relations with the Kremlin have been stiff since Yushchenko came to power in January on a platform of moving Ukraine into closer integration with the West.
The dispute also has raised concerns about gas supplies to Europe _ about half the natural gas consumed in the European Union comes from Gazprom and most of that is shipped in pipelines that cross Ukraine, reports AP.
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