Ukrainian PM Accuses Russia of Gas Overcharges

Ukrainian Prime Minister Mykola Azarov has once more accused Russia of overcharging Ukraine for gas supplies.

Speaking on Saturday, ahead of a meeting between Russian and Ukrainian Presidents, Vladimir Putin and Viktor Yanukovych, Prime Minister Azarov said that Russia had overcharged Ukraine for gas by $7 billion annually since 2009.

However, he said that Ukraine would not pay the full $7 billion overpayment for gas supply for 2012 as it did not received the contracted level of gas from Russia. Ukraine would pay for what it owed, he asserted, but would not pay for gas that was not delivered.

"Every day we paid and will pay for our obligations," he said in an interview on Ukrainian television. "The only exception here is the claim of Russia, coupled with a gas contract. We told them we had considered this 7 billion were unreasonable and would not pay for them."

In the same interview, the PM said that a new gas deal must be achieved this year.

"Early or late the gas deals with Russia will be renegotiated," he said. "In the current year we must achieve reconsidering of the contracts."

The Ukrainian president arrived in Moscow today on a working visit with the Russian government. Aside from an official press conference, talks on the throny issue of gas supply, contracts and payment have been discussed privately today. There is so far no indication of any resolution of the long-running gas dispute on the cards from either side.