Russia to cut gas prices for Ukraine or to risk losing profits in Europe, Bohdan Sokolovsky says

Ukraine stands a good chance to get lower gas prices from Russia as the latter is interested in uninterrupted pumping, former advisor to ex-Pres Yushchenko on fuel Bohdan Sokolovsky said, commenting on Premier Azarov’s statement on the need to revise the existing gas contract between Russia and Ukraine.

Next week, a Ukrainian government delegation is to visit Moscow for gas talks. The outcome of the talks will depend on how convincing the arguments of Ukrainians will be and, on the other hand, on how strong the Kremlin’s desire for partnership is, Sokolovsky said. 
Ukraine badly wants lower gas prices now. However, viewed from the medium-range perspective, the Russians also need this, the expert went on. 
 “If the present downfall continues and NaftoHaz further slips into debt, the company will soon lack the funds to maintain its gas pipelines. Consequently, the reliable and steady pumping of the Russian gas may be affected, something that may eat into the profits of Russia on Europe’s markets,” he explained. 
In Sokolovsky’s opinion, the price of $250-280 per 1,000 cu.m. is a fair one for Ukraine.
If the gas talks are dominated by politics (like it was under Pres Yushchenko), this will cut the chances of Ukraine, he said.

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