Gazprom chief warns Ukraine on gas price

09:54, 01 July 2008
Ukraine
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Gazprom delivers more than a quarter of ...

The price Ukraine pays for gas imported from Russia could more than double next year, the head of Gazprom warned on Friday, according to Financial Times.

Alexei Miller said prices for Ukraine could rise to more than $400 (?254, £200) per 1,000 cubic metres in 2009 – up from $179.5 this year – if, as expected, the Russian state-controlled monopoly has to pay more for the gas it buys from Central Asia.

The increase could spark a new price dispute as Yulia Tymoshenko, Ukrainian Prime Minister, headed for Moscow on Friday evening.

Gazprom delivers more than a quarter of Europe’s gas supplies, mostly through Ukraine. Previous pricing disputes have led to disruptions in supplies to Europe.

Gazprom has signalled that deals with Central Asian suppliers could be reviewed upwards. It is yet to agree any new contracts.

Mr Miller’s comments came as Gazprom elected Viktor Zubkov, an ally of former president Vladimir Putin and a former Prime Minister, to take over from Dmitry Medvedev, Russia’s President, as chairman of the world’s largest gas company at its annual meeting on Friday.

Arguing that state energy companies were set to dominate the global battle for new resources, Mr Miller told shareholders that Gazprom intended to extend its global reach by buying power and oil assets abroad.

He also said that Gazprom intended to expand its presence in the Russian oil sector.

By Catherine Belton, FT.

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