AP
Ukraine PM: Charge More for Gas Transit
Wednesday January 23, 2:04 pm ET
Ukraine's Tymoshenko Calls for Hiking Fee for Transit of Gas From Russia to Europe


KIEV, Ukraine (AP) -- Prime Minister Yulia Tymoshenko said Wednesday that Kiev should charge Russia more for transit of the gas it sends to Europe via Ukraine, a statement that is likely to aggravate already uneasy relations with Moscow.

Late last year, Ukraine agreed to a 40 percent increase in the price for gas imported from Russia, and now pays $179.50 per thousand cubic meters.

Most of the gas Ukraine uses is imported from the energy-rich Central Asian nation of Turkmenistan. The gas is imported through a Swiss-based trading company, RosUkrEnergo, half of which is owned by Russia's state-owned monopoly Gazprom and half by two Ukrainian businessmen.

Tymoshenko argued that since Ukraine is now paying more for gas, it should also earn more for shipping it to Europe.

"The time has come for Ukraine and Russia to have a discussion regarding the cost of transiting Russian gas through Ukrainian territory to Europe," Tymoshenko said after a Cabinet meeting, according to her office.

Ukraine currently charges $1.70 per 1,000 cubic meters for every 100 kilometers, the same transit price for gas shipped across Russian territory.

Tymoshenko suggested the new price should be set based on what other countries are paying.

Her comments were in sharp contrast with the stated position of President Viktor Yushchenko, who has said that raising the transit fee would only result in a higher gas bill for Ukraine.

Russia and Ukraine have clashed over gas prices in the past. Moscow temporarily cut off gas supplies to Ukraine two years ago in a move widely seen as punishment for Kiev's pro-Western policies. The shutdown affected supplies in Western Europe.