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The Prime Minister noted that Gazprom, bearing in mind the difficult position in which Ukraine currently finds itself, suggested that Ukraine purchases Russian gas at the price of $250 per 1000 cubic metres.

Vladimir Putin noted that during recent years, Gazprom has been buying gas from its Central Asian partners, in Turkmenistan, Uzbekistan and Kazakhstan and essentially simply transporting it to Ukraine. Starting in 2009 the Central Asian countries will adopt world market prices for the gas they sell, and that Gazprom itself will be buying that gas at a price of no less than $340 per thousand cubic metres. Taking into account the transit costs, the end price for Ukraine would be in the order of $380 dollars per thousand cubic metres.

In spite of this fact, the Ukrainian partners rejected Gazprom’s proposals and issued official statements saying that in the event of no gas supply contract being signed, Ukraine would obstruct the transit of Russian gas to consumers in Western Europe.

Vladimir Putin also noted that the transit contract for Russian gas to consumers in Europe (at a cost of 1.6 dollars per thousand cubic metres per 100 km) which was signed back in 2007 remains current and active to the 31st December 2010.

Dmitry Medvedev expressed his hope that consequently there would be a change in the position of Ukraine, and that the Ukrainian partners will be able to make a sensible decision relating to the signing of the gas contract with Russia for 2009, and thus avoid condemning their own citizens to serious difficulties.