Russia To Revise Gas Supply Prices For Former Soviet Republics

Russia intends to revise its natural gas supply terms with Moldova, Georgia and the Baltic states, the country?s Industry and Energy Minister Viktor Khristenko told the lower chamber of the Russian parliament on Wednesday, Mosnews.com reported.

Earlier Alexander Ryazanov, the deputy chairman of the board of Russian natural gas monopoly Gazprom, said that the company planned to establish an export gas price for the Baltic states at $120-$125 per 1,000 cubic meters in 2006, compared with the current $80. The announcement was made on Nov. 29.

Ryazanov also said that last week Gazprom had agreed with Georgia to set a gas price of $110 per 1,000 cubic meters. ?The price for Armenia will also be about $110 and for Moldova, $150-$160,? Ryazanov said.

?This has nothing to do with politics,? he added.

As MosNews has reported, Russia is still trying to reach a gas price agreement with Ukraine. Up until now Ukraine has been buying Russian gas for $50 per 1,000 cubic meters and paying the vast part of the sum with barter, by allowing the transit of Russian gas on to Europe. Now Russia wants Ukraine to pay $160 per 1,000 cubic meters and prefers cash payments for its fuel. Gazprom has announced that it would be ready to raise the prices less drastically in return for joint management of Ukraine?s gas pipeline system, but so far Russia?s neighbor has not replied to this offer.

Gazprom has already said that if no agreement is reached by Jan. 1, Russia will simply cut off all gas supplies to Ukraine.