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. Last Updated: 07/27/2016

Minister: Gas Deal May Need Revision

A hard-won deal on gas deliveries to Ukraine will have to be renegotiated if one of the suppliers, Turkmenistan, charges more for its natural gas exports, Industry and Energy Minister Viktor Khristenko said Thursday.

Moscow and Kiev last month had a bitter dispute over Moscow's demands for a more-than-fourfold hike in prices that briefly saw Russian gas supplies cut off to Ukraine. In a face-saving agreement, Ukraine agreed to pay nearly double the price for gas by blending Russian gas priced at $230 per 1,000 cubic meters with purchases of much-cheaper Turkmen gas.

However, Turkmen President Saparmurat Niyazov said Saturday that Turkmenistan might decide to increase gas export prices from $65 to $100 per 1,000 cubic meters, as of September or October, state television reported.

"Everything in life changes. Even the fixed pricing formula for RosUkrEnergo is a floating price that could change depending on international prices," Khristenko was quoted by Interfax as saying.

Khristenko was referring to the intermediary company that sells a mix of Russian and Turkmen gas to Ukraine.

Interfax reported that Khristenko said it was too early to say how much the price of gas for Ukraine might change.

Ukraine on Feb. 2 signed an agreement with Russia under which the price of $95 per 1,000 cubic meters would remain fixed until 2010. Under the deal, Ukraine would receive 34 billion cubic meters of Russian and Central Asian gas this year at a price of $95 per 1,000 cubic meters, Ukrainian state-controlled gas company Naftogaz Ukrainy said.

The deal also stipulated that Ukraine would receive up to 60 bcm of gas annually at the same price through the end of 2010, Naftogaz said.