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As warmer spring weather approaches, Ukraine is feeling bold enough to talk tough with Russia on natural gas supplies.

The country is willing to cut imports from its eastern neighbor to a minimum this year unless the former allies overhaul their price agreement, the head of Ukraines state energy company said yesterday in Davos.

We could get as much as 90 percent of the gas from Europe if we fail to agree on a price with Gazprom, NAK Naftogaz Ukrainy Chief Executive Officer Andriy Kobolyev said in an interview. We can see Europes desire to work with us because we proved this year that were a very dependable and financially reliable partner.

Putin's Pipeline Politics

European suppliers, including RWE AG, GDF Suez SA (GSZ) and Statoil ASA (STL), stepped into the gap left when Russia cut supplies during a payment dispute in June, according to Kobolyev. Their price is more than 10 percent lower now than that of Russias OAO Gazprom (OGZD), which is charging Ukraine about $330 per 1,000 cubic meters in the first quarter with payments upfront.

Ukraine is trying to reduce reliance on gas shipments from Gazprom, the worlds biggest supplier of the fuel. A deadly conflict in eastern Ukraine has ruined relations with Russia, which depends on Ukraines Soviet-era pipeline network to help supply about 30 percent of Europes gas.

This winter is going to be very difficult, said Andriy Kobolyev, chief executive officer of NAK Naftogaz Ukrainy, after traveling to Slovakia to ceremonially start the first flows of gas from the EU into Ukraine. Close

This winter is going to be very difficult, said Andriy Kobolyev, chief executive... Read More

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This winter is going to be very difficult, said Andriy Kobolyev, chief executive officer of NAK Naftogaz Ukrainy, after traveling to Slovakia to ceremonially start the first flows of gas from the EU into Ukraine.

Link:
Ukraine Talks Tough on Russian Gas as EU Supplies More Fuel