President of Ukraine Viktor Yanukovych and Russian President Dmitry
Medvedev signed the Agreement between Ukraine and the Russian Federation
on deployment of Russian Black Sea Fleet in Ukraine.
Also in
the presence of the two Presidents Russia’s Gazprom Board Chairman
Alexey Miller and Chairman of Naftogaz of Ukraine Yevhen Bakulin have
signed amendments to the contract between Gazprom and Naftogaz of
Ukraine on gas trade for 2009-2019 and amendments to the contract
between Naftogaz Ukraine and Gazprom on the volumes and conditions of
gas transit through Ukraine for 2009-2019.
Ukraine will receive a discount of $100 per 1,000 cu m at the natural
gas price of $330 and a 30% discount on other prices, Russian President
Dmitry Medvedev said on Wednesday. Medvedev's announcement came
after a meeting with his Ukrainian counterpart Viktor Yanukovych in
Kharkov in eastern Ukraine.
"Discounts for Ukraine will come
into effect from April this year," Yanukovych said.
The
discount will apply to 30 billion cubic meters of Russian natural gas to
be supplied to Ukraine in 2010 and 40 billion cubic meters in
subsequent years.
The amendments to the gas deal between
Russia and Ukraine also cancel provisions on penalties, which had never
been applied.
Ukraine currently purchases
Russian natural gas at the average annual price of $337 per 1,000 cu m.
The gas price equaled $305 per 1,000 cu m in the first quarter, and
increased to $330 per 1,000 cu m in the second quarter of this year.
The deal seems to be advantageous for both parties as Ukraine has
agreed in exchange to extend the term of the Russian Black Sea Fleet
presence in the country's Crimea for 25 more years.
The new
agreement on the Russian Black Sea Fleet signed after talks between
Medvedev and Yanukovych also stipulates the extension for an additional
five years after the term expires.
