Medvedev lays down terms for resuming gas supplies

MOSCOW. January 8. KAZINFORM Russian President Dmitry Medvedev said on Wednesday that gas deliveries would resume if Ukraine pays market rates for the Russian gas, news agencies here reported.

In a telephone conversation with his Ukrainian counterpart Viktor Yushchenko, Medvedev urged the latter to take immediate action to reach necessary understandings and renew Russian gas transit to Europe. "Gazprom and Naftogaz must sign a contract at European market prices to resume gas supplies to Ukraine ... There must not be any discounts or special rates at all," Medvedev was quoted by Interfax as saying in a Kremlin press service statement. The resumption of gas supplies also requires a control mechanism with the involvement of Russian and Ukrainian energy officials, EU observers and international legal firms, he said. The Russian president added that the debt problem has not been settled and Ukraine must pay the debts in full as soon as possible. Russia cut off gas supplies to Ukraine on Jan. 1 after the two countries failed to reach an agreement on gas prices for 2009. Earlier in the day, Russia ceased deliveries to Europe through Ukraine entirely after accusing Kiev of "stealing" the transit gas. About a quarter of the gas used in the European Union -- more than 40 percent of the bloc's imports -- comes from Russia, Kazinform cites Xinhuanet.