Kiev is ready for compromise with Russia to revise gas deal

Ukraine is ready for compromise and hopes that a new viable gas contract with Russia will be concluded during President Viktor Yanukovych's upcoming visit to Russia, Prime Minister Mykola Azarov said on Tuesday. Ukraine has been seeking a revision to its 2009 gas deal with Russia since last spring, saying that the contract's gas price formula is unfair. Russia has tied the price for gas to the international spot price for oil, which have risen strongly recently since that year due to the instability in the Middle East. Yanukovych will arrive in Moscow on September 24. "We have big hopes. We believe this visit will lay the ground for a new gas contract," Azarov said. "We should receive a good contract which must also satisfy Russia," Azarov added. Ukraine believes that a fair price for Russian natural gas should be $230 per 1,000 cubic meters, Ukrainian Energy Minister Yuriy Boyko told country's TV channel Inter on Saturday. The minister said Ukraine is paying $355 per 1,000 cubic meters of gas during the third quarter of this year and that price is expected to rise to some $400 in the fourth quarter. Ukraine, Boyko said, is currently buying the Russian gas at a higher price than other European countries and the figure of $230 was calculated in line with the price that Germany pays Russia, minus transit fees across Ukrainian territory.