Russian gas giant Gazprom has not agreed to cut term gas supplies to Kiev in 2013, CEO Alexei Miller said late Wednesday, denying statements to that effect by Ukrainian officials.
"The contract signed with Ukraine envisages Russian gas supplies at 52 Bcm/year. There have been no agreements to cut volumes," Miller said in Kiev after talks held during Russian Prime Minister Dmitry Medvedev's visit to Ukraine, the Prime news agency reported.
Earlier, media in both countries quoted Ukraine's energy and coal industry minister Yuriy Boyko as saying that Gazprom and national energy company Naftogaz Ukrayiny had agreed that Russian gas supply to Ukraine will be cut to 27 Bcm in 2013.
Naftogaz had sought to cut Russian gas imports to 27 Bcm in 2012 as well, from 40 Bcm in 2011, as Kiev considers it too expensive.
Naftogaz CEO Evgeny Bakulin said mid-June that in the third quarter of 2012 the company would pay more than $426/1,000 cubic meters for Russian gas, Prime news agency reported.
Ukraine paid Russia about $425/1,000 cu m in Q2 and $416/1,000 cu m in Q1. It has been seeking to reduce it to between $230 and $250/1,000 cu m.
In March, Gazprom suggested it was ready to cut the price of gas supplied to Ukraine by 10% provided it agreed to import at least 33 Bcm in 2012. Ukraine rejected the proposal, seeking to instead change the 10-year gas deal signed in January 2009.
Kiev says the deal signed by Yulia Tymoshenko and Vladimir Putin, then prime ministers of Ukraine and Russia, respectively, is unfairly favorable to Russia. In October 2011, Tymoshenko was sentenced to seven years in prison for abusing authority while negotiating the gas agreement with Russia.
ADDITIONAL FINANCIAL HELP OFFERED
Miller also said Gazprom sees no reason to cut the price, which is "absolutely market-based," but is ready to provide additional financial support to ensure Ukraine gets enough gas for underground storage ahead of the winter demand.
"[In early June] we made a prepayment of $2 billion [for transit of Russian gas via Ukraine], in line with Ukraine's request," Miller said on television. "If Ukraine needs additional money to store [gas] volumes, necessary to avoid any problems during the upcoming winter season, we'll consider the possibility of providing additional funding."
Gazprom wants to avoid a repeat of what happened last winter when Ukraine siphoned off gas from the transit pipeline, Miller said.
In February, Gazprom struggled to meet European demand for gas during an unprecedented cold snap, which led to at least eight EU members -- including Italy, France, Germany and Austria -- reporting a cut in gas supplies from Russia. Gazprom had said then that it was exporting at maximum capacity and alleged that Ukraine was siphoning off gas from the transit system, resulting in shortages to Europe.
Naftogaz has repeatedly denied the allegations.
