FACTBOX-Russia-Ukraine 10-year gas supply deal

Nov 19 (Reuters) - Ukrainian President Viktor Yushchenko on Thursday asked Russia to change a 10-year gas supply deal, signed by the two states in January, saying it was too onerous for Ukraine's economy [ID:nLJ321342]

The call came a few hours before a meeting between Ukraine's Prime Minister Yulia Tymoshenko, Yushchenko's main political opponent, and Russian Prime Minister Vladimir Putin.

Tymoshenko said ahead of talks that she was happy with the January deal, which she signed with Putin after nearly three weeks of Russian gas supply disruptions to Ukraine and Europe, [ID:nLJ77516]

Following are details of the January contract between Russian gas export monopoly Gazprom (GAZP.MM) and Ukrainian energy firm Naftogaz.

-- The contracts on Russian gas supplies to Ukraine and the transit of Russian gas to Europe via Ukraine were signed separately and are independent of each other.

Gazprom, which supplies Europe with a quarter of its gas needs, says separate contracts will help prevent any future severance of European supplies in the case of future gas pricing disputes with Ukraine.

-- Under the transit contract, Gazprom pays Ukraine the discounted transit fee of $1.7 for transporting 1,000 cubic metres 100 kilometres. From Jan. 1, 2010, the transit fee will reach market levels and will be calculated according to a general European formula. It should reach around $2.67-$2.72, according to Gazprom and Naftogaz.

Gazprom agreed to export up to 120 billion cubic metres (bcm) of gas to Europe via Ukraine in 2009 but said later that volumes could be smaller because of a drop in European demand and as customers preferred to buy cheaper liquefied natural gas.

-- Under the supply contract, Ukraine pays the European market price with a discount rate of 20 percent. That brought the gas price for Ukraine to $360 per 1,000 cubic metres in the first quarter of 2009, $273 in the second quarter, $198 in the third quarter and $208 in the fourth quarter.

The price should reach full European market level from Jan. 1, 2010.

Gazprom had been due to export 40 bcm of gas for Ukrainian consumption in 2009 but Putin later agreed not to impose fines on Ukraine for low gas purchases after Tymoshenko said the country would not need more than 25 bcm. The issue could still cause tensions as new volumes have never been agreed on paper.

By comparison Ukraine bought 49 bcm in 2008 and paid $8.6 billion.

-- Both contracts are valid from 2009 until 2018.

-- The contracts state that Gazprom and Naftogaz deal directly with each other, eliminating intermediaries.