Kliuyev: Ukraine Will Get Lower Gas Prices From Russia

The Ukraine is expecting lower gas prices from Russia, a Ukrainian government minister has said. Andriy Kliuyev, the country's First Deputy Prime Minister and Minister for Economic Development and Trade made the assurance during the "Hour of Questions to Government" in Ukraine.

"We are holding the talks and preparing a new gas contract," he said. "I cannot tell you the exact gas price now, but I assure you that it will be much lower than the current one."

Minister Kliuyev said that the revised price could be expected by early 2012, with talks between Russia and Ukraine ending by the end of this month. The discussions will allow Ukraine to draft a budget for 2012 using newly forecast gas prices.

"The talks are underway with the Russian Federation concerning the supply of natural gas," he said. "In our opinion, they will end this month, in November."

Minister Kliuyev said that currently, counting a discount of $100 applied to gas prices in 2010, Ukraine pays $414 per 1,000 cubic metres for Russian gas. The minister expects that figure to be revised downwards.