Excerpts from the transcript:
Meeting with Minister of Energy Alexander Novak and Gazprom CEO Alexei Miller
Dmitry Medvedev: During the entire winter season and until the end of the second quarter, gas prices for Ukraine were calculated with a $100 discount per every 1,000 cubic metres at their request. This discount expires tomorrow.
The Ukrainian side has asked us to extend the discount. We consider this to be quite predictable, given Ukraine’s current economic plight. In effect, the country has found itself on the verge of default. Of course, we should assess Ukraine’s real economic potential, and we should meet our Ukrainian partners halfway, despite all the problems in our current relationship with Ukraine.
Apart from our national interests, we will have to consider the stance of our European partners. The fulfilment of an agreement on gas deliveries to Ukraine serves as a guarantee of sustained Russian transit to Europe, and we value our reputation as a reliable gas supplier. We will have to continue our trilateral dialogue in the Russia – European Union – Ukraine format.
Considering all these factors and the request, I have decided to sign a Government resolution that will lay out a special procedure for calculating export duties during gas deliveries to Ukraine, for one quarter. At the same time, we are unable to offer the previous discount, taking into account the above-mentioned factors and changes in the price situation. Global oil prices directly affecting gas prices have plunged. Nor should we forget that Naftohaz, Ukraine's national company, still owes multi-billion overdue payments to Gazprom. Therefore, the end price of gas for Ukraine in the third quarter will be about $247.18, which includes a $40 discount. This price will compare with those for neighbouring countries. In effect, it will be sufficiently competitive and fair, as is the price for Poland.
We will be guided by these decisions in the next three months. After that, we’ll see. Subsequent decisions will depend on the economy, the gas market and specific criteria that we will use in the future.
Alexander Novak: As per your instruction and the presidential instruction, we are continuing trilateral consultations in the Russia – Ukraine – EU format. The next round of these consultations is scheduled for 30 June. Apart from what you have mentioned, issues regarding the storage of gas in underground reservoirs for effectively living through the autumn-winter season, as well as the possible provision of financial assistance by the European Commission to Naftohaz of Ukraine for ensuring the required gas purchases, will be discussed.
Alexei Miller: Today, we have received a request for a discount from Naftohaz of Ukraine. The discount is provided strictly in accordance with the current contract for the delivery of gas to Ukraine that was signed in January 2009.
Mr Medvedev, gas prices for Ukraine will be $247.18 in the third quarter, in line with the decision that you have just mentioned. These third-quarter prices are exactly the same as those for the second quarter.
Dmitry Medvedev: In effect, we are preserving the price parity. I believe this is a serious measure aiming to support the Ukrainian economy.
