The gas contract of 2009 contradicts interstate agreements of Ukraine and Russia, Prime Minister Mykola Azarov has told reporters in Kyiv Friday, according to UKRINFORM.

Azarov stressed that the ratified intergovernmental agreements in the gas sector stand above the economic contract signed by NJSC Naftogaz of Ukraine and JSC Gazprom.

The prime minister said that he had sent a letter to Prime Minister Vladimir Putin stressing the need to implement the international gas agreement.

"We have sent a letter to the Russian government containing our arguments. Under the intergovernmental agreement, ratified by the Verkhovna Rada of Ukraine and the Russian State Duma, which came into force in 2004, the annual volume of gas supplies, transit conditions and the price shall be set by a special intergovernmental protocol. Unfortunately, since 2005, this provision having the force of an international agreement, that is, standing above economic contracts, and, naturally, above domestic law, has been never executed. Therefore, we believe that the contract that was signed in January 2009 conflicts at least with the part related to annual revisions of agreements, and they are not implemented. So we have every reason to suggest that the government of Russia, in accordance with the intergovernmental agreement, hold negotiations on clarifying the volume of gas supplies in 2012, gas supplies and transit conditions," Azarov said.

He added that today at the summit of CIS leaders President Viktor Yanukovych will meet Russian President Dmitry Medvedev to discuss the issue of gas contracts.

"It is our direct proposal - holding the next round of negotiations and finally solving this problem," Azarov stressed.

The prime minister emphasized that the price of Russian gas is a crucial issue for the Ukrainian economy, because it forms the cost structure of most Ukrainian goods.

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