Ukraine Gives Russia Ultimatum on Gas Deal

Posted September 1st, 2011 at 4:00 pm (UTC-5)
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Ukraine has given Russia a final chance to resolve a dispute over exporting less natural gas to Ukraine.

Ukrainian Prime Minister Mykola Azarov said in a speech Thursday that his government will make one more attempt with Russian officials to find a long-term agreement. He said if this does not happen, then responsibility for the consequences will lie with leaders who refused to hear Kyiv's arguments.

Ukraine wants to import one third less gas from Russia. This week, Russian President Dmitry Medvedev said Ukraine must join a Russian-led customs union, a move that would halt its integration into the European Union. He also said Kyiv must give control of half of its state energy company to Russia's Gazprom.

Ukraine imports most of its energy from neighboring Russia. It also wants to charge Moscow a higher fee for Russian gas sent through Ukraine to the European Union.

Russia pumps the majority of its gas exports to Europe through Ukraine. But Moscow has suspended deliveries several times in recent years during pricing disputes with Kyiv. The disputes have interrupted Russian gas supplies to many European countries during cold winter months.

Gazprom is the world's largest natural gas extractor and Russia's largest company. The firm has a monopoly over Russia's pipelines and fuel exports.