No need to revise gas supply contracts with Russia as Ukraine will transit gas at market prices as of Jan. 1, 2010 - Oleksa Hudyma

The transit fee is different for other European countries as it depends on the distance and volumes of gas pumped. The farther the country is from Russia, the higher the transit fee. The transit fee also hinges on the price of oil. Therefore, transit fees are set based on objective factors and are not subject to any political pressure, Hudyma says.

It would be premature to discuss the fee for 2010, as it is subject to fluctuations depending on the price of oil. “We can forecast, however, that the fee will be up by one dollar,” the expert notes.

As to the sanctions for shortfalls in the purchases of the Russian gas, Hudyma says, Russia won’t impose any sanctions on Ukraine as it will not impose any similar sanctions on European countries.

Russia agreed to sell less than contracted amounts of gas to Ukraine due to the recession. Moreover, Russia pressured the EU to extend credits to Ukraine for pumping extra gas into its underground reservoirs. However, there is a chance of receiving a 300-mln credit from the EU for this purpose. Meanwhile, Ukraine has almost finished to fill up its reservoirs with gas.

Importantly, Hudyma says all the talk about the likely gas spat with Russia is mere electioneering.

Gas contracts with Russia can be renegotiated anytime, Pres Yushchenko told Bloomberg, his site runs.

“The gas contracts can be revised anytime,” the incumbent said without any proper explanations. “The contracts include several basic strategies, and if Russia gained from them, Ukraine came up the looser. I don’t think the gas agreement based on such non-market principles added any stability to gas supplies to Europe,” Yushchenko said.

“The current problems of Ukraine result from the cabinet’s policy and bad gas contracts signed with Russia in January 2009,” the incumbent charged. “If we succeed to raise transit fees via Ukraine to Europe’s lowest rates, Naftohaz Ukrayiny would get $2.5 billion extra,” Yushchenko calimed.