Putin: Ukraine Can Afford to Pay Gas Price

NOVO-OGARYOVO, Russia – Russian President
Vladimir Putin struck a hard line Thursday in a dispute with neighboring Ukraine over natural gas supplies, saying that the former Soviet republic can afford to pay the market price for Russian gas.

Cabinet officials reported to Putin that Russia and Ukraine had failed to strike a deal on Russian natural gas supplies to Ukraine next year.
“Difficult work is under way and no solution has been found yet,” Industry Minister Viktor Khristenko said.

Putin said that Ukraine’s economy had seen fast growth this year, and added that the Ukrainian government had gotten substantial privatization revenues and Western loans.

“They (the loans) total billions of dollars, and this is quite sufficient for buying the necessary amount of gas from Russia at the market price,” Putin said during a meeting with Cabinet officials at his country residence in Novo-Ogaryovo, just outside Moscow.

AP