Kremlin wants concessions from Ukraine in gas talks

Ukraine goal of revising the existing gas-supply contract with Russia can’t be reached in a single round of negotiations to be held next week in Moscow as the Russians have repeatedly stated they are not interested in revising the existing contract, says Nomos Center energy programs director Mykhailo Honchar, speaking to ZIK March 19.

The Russian Gazprom has already included prospected revenue for gas sold to Ukraine in its budget. If Ukrainians demand cuts in gas prices, Gazprom will have to look elsewhere to make up for lost revenues.
 “In this respect, the Russians will hardly cooperate. Instead, they will ask for concessions from Ukraine as a condition for cutting their prices. The process will take more than a single trip to Moscow, the expert says.
The concessions can include a more lax stand on the stationing of Russia’s Black Sea Fleet in Crimea or the creation of a gas-pumping consortium. However, such concessions cannot be given by Ukraine, the expert stresses.

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