Ukraine Diverts Gas Away From Russia

Talks between Gazprom chief manager Aleksey Miller and Ukrainian prime minister Viktor Yanukovych concerning the regularization of the energy balance between Ukraine and Russia for late 2006 and early 2007 were concluded on Thursday. According to Kommersant’s sources, Ukraine was assured that it would not be left without gas and that, despite the fact that Gazprom will begin to buy Turkmen gas for $100 per cubic meter in October, Ukraine will still be able to purchase its gas for $95 until the end of the year.

However, this does not come without a cost. In return, Gazprom is demanding control over Ukraine’s major gas arteries and the opportunity to purchase stakes in the country’s fuel and energy sectors. Ukraine’s leadership is opposed to both demands, and it is possible that the situation could lead to another escalation of the conflict over gas between the two countries.
Kommersant