Russia will supply gas to Ukraine for USD160 per 1,000 cubic meters and tariffs for gas transportation via Ukraine might double, analysts believe. Industry watchers say that price sought by Gazprom of USD180 to might hardly be agreed on. The two parties are in talks now and these negotiations could be over and the conflicting parties might enter into an agreement on the issue late in 2005, RBC reported.

Ukraine is largest gas transporter and without it Gazprom cannot meet its obligations regarding gas supplies to Europe. If prices for gas supplied to Ukraine are increased to USD180 per 1,000 cubic meters Ukraine could set price for oil transportation being 3-4 times higher than the current one.


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