Ukraine considers the formula used to calculate the price of Russian gas unacceptable, and considers it necessary to reach a decision that would satisfy both sides, President Viktor Yanukovych said while talking to the media in Cherkassy.

"During my very first visit to Russia I said that the formula fixed by the signing of the gas contracts of early 2009 by the then Prime Minister, was unacceptable and incorrect for us, to put it mildly. In result, we have got a base price of $450. That price is unbearable for Ukraine and it is incorrect and unfair," he said.

"We will do our best to find an answer to this question, which would satisfy Ukraine and Russia both," Viktor Yanukovych said.

The President reminded that first step to reduce the price of gas for Ukraine was made last year – the price was reduced by $ 100 per thousand cubic meters. "If we did not do it, we would have lost not only the industry of Ukraine, we would have lost the country, because basic industries would have stopped impacting everything else," he said.

But after a year of payments by a new price, he said, the situation still remains "on the brink". "We pay that price for gas, but it is very expensive. And our industry still hangs on the edge of competitiveness. The profitability is very low. We believe this is an incorrect price," he said.

Viktor Yanukovych noted that one of the proposals was to change the currency of payment for gas between Ukraine and Russia to rubles. "This proposal is acceptable for us. We choose this way, but we believe that in such case our Russian partners should lower the price," he said.

Complex negotiations on the question are going on now, President Yanukovych said, adding that Ukraine has the ability to pay in Russian rubles because the price in rubles will be correlated with that in dollars anyway.

"It is not that important for us in terms of saving funds. But from that point of view that we will start a positive movement towards each other in our pricing policy, trade and economic policy, this step could be justified," Viktor Yanukovych said, adding that the question is subject to negotiation and will be determined in time.


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