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. Last Updated: 07/27/2016

Ukraine May Raise Its Fees for Gas Transit

KIEV -- Ukraine may raise the fees it charges Russia to ship natural gas to Europe next year if Russia demands a higher price for the fuel from Ukraine, a state official said Monday.

"Ukraine depends on Russia for its fuel supply, but in turn Russia depends on Ukraine because it pumps gas to the European Union through its territory," Yuriy Prodan, deputy secretary of Ukraine's National Defense and Security Council, said at a news conference in Kiev.

"Ukraine must use its transport potential and demand to review transit fees."

Ukraine relies on imports for about 70 percent of its energy, mostly from Russia. Russia supplies a quarter of Europe's gas, 80 percent of which is shipped through Ukraine. Russia cutoff gas to Ukraine in the first three days of January 2006 because of a pricing dispute, causing shortages elsewhere in Europe, including in Hungary, Italy and Germany.

Gazprom doubled the price charged to Ukraine in 2006 and increased it again by 37 percent this year. Ukraine has not changed its transit fee since 2006.

A date for talks on next year's gas price is yet to be decided.