Political rows overshadow Russia-Ukraine gas talks
By Denis Dyomkin
NOVO-OGARYOVO, Russia, Oct 2 (Reuters) - Russia and Ukraine tried to reach a deal over natural gas supplies on Thursday, in talks overshadowed by political turmoil in Kiev and a deepening row over Ukraine's arms sales to Georgia.
Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko met outside Moscow to try to hammer out an agreeement over the price Ukraine will pay next year for the Russian gas on which its economy depends.
With Russian gas prices for Europe at record highs of over $500 per 1,000 cubic metres, Russian gas giant Gazprom (GAZP.MM) made clear on Wednesday Tymoshenko would get no easy ride in her bid to shield Ukraine's economy from a sharp price rise.
Gazprom has long said it wants to switch to market prices with ex-Soviet states and has indicated it could increase significantly the price for Ukraine, which at the moment pays $179.50 per 1,000 cubic metres.
"There is every possibility to reach agreement on market prices, on a gradual transition to market prices," Tymoshenko told Putin in opening remarks. "This is good for Europe and Russia, and Ukraine."
The Russian prime minister, who until he stepped down in May served two terms as president, took Ukraine's Western-leaning leaders to task for selling arms to Georgia, with which Russia fought a brief war in August.
"We regret that Ukraine considered it possible to supply weapons to the conflict zone," Putin told Tymoshenko. "This is a special case, and in such situations states should demonstrate restraint."
INFIGHTING IN KIEV
Moscow, condemned by the West for its military campaign in Georgia and recognition of Georgia's two breakaway regions as independent states, was irked by President Viktor Yushchenko's support for Tbilisi during and after the conflict.
Russia has also watched with unease Yushchenko's campaign to join NATO. The president has said Russia's navy will have to leave the base it rents on Ukraine's Black Sea coast when the lease expires in 2017.
Putin said a stand-off in Ukraine between Tymoshenko and Yushchenko -- which has seen their coalition fall apart and could lead to an early parliamentary election -- put a question mark under any agreement on gas.
He said he was meeting Tymoshenko in complicated circumstances. "This is linked ... to Ukraine's internal political situation," Putin said.
"As it happens in such cases, the agreements which are reached today may be called into question tomorrow."
Tymoshenko was viewed with caution by Moscow after she joined with Yushchenko in the 2004 "Orange Revolution" to overturn a victory for the Moscow-backed candidate in a presidential election.
But as her relations with Yushchenko have turned sour, she has softened her stance towards Moscow and criticised the president for backing Georgia too stridently. This week she suggested he lacked vigilance in investigating possible illegal arms deals.
In a further sign of her rift with Yushchenko, Tymoshenko's flight to Moscow was delayed on Thursday.
She told reporters that Yushchenko had taken over her plane without warning and used it for his own trip to western Ukraine. (Writing by Christian Lowe and Dmitry Solovyov; editing by Andrew Roche)
NOVO-OGARYOVO, Russia, Oct 2 (Reuters) - Russia and Ukraine tried to reach a deal over natural gas supplies on Thursday, in talks overshadowed by political turmoil in Kiev and a deepening row over Ukraine's arms sales to Georgia.
Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Tymoshenko met outside Moscow to try to hammer out an agreeement over the price Ukraine will pay next year for the Russian gas on which its economy depends.
With Russian gas prices for Europe at record highs of over $500 per 1,000 cubic metres, Russian gas giant Gazprom (GAZP.MM) made clear on Wednesday Tymoshenko would get no easy ride in her bid to shield Ukraine's economy from a sharp price rise.
Gazprom has long said it wants to switch to market prices with ex-Soviet states and has indicated it could increase significantly the price for Ukraine, which at the moment pays $179.50 per 1,000 cubic metres.
"There is every possibility to reach agreement on market prices, on a gradual transition to market prices," Tymoshenko told Putin in opening remarks. "This is good for Europe and Russia, and Ukraine."
The Russian prime minister, who until he stepped down in May served two terms as president, took Ukraine's Western-leaning leaders to task for selling arms to Georgia, with which Russia fought a brief war in August.
"We regret that Ukraine considered it possible to supply weapons to the conflict zone," Putin told Tymoshenko. "This is a special case, and in such situations states should demonstrate restraint."
INFIGHTING IN KIEV
Moscow, condemned by the West for its military campaign in Georgia and recognition of Georgia's two breakaway regions as independent states, was irked by President Viktor Yushchenko's support for Tbilisi during and after the conflict.
Russia has also watched with unease Yushchenko's campaign to join NATO. The president has said Russia's navy will have to leave the base it rents on Ukraine's Black Sea coast when the lease expires in 2017.
Putin said a stand-off in Ukraine between Tymoshenko and Yushchenko -- which has seen their coalition fall apart and could lead to an early parliamentary election -- put a question mark under any agreement on gas.
He said he was meeting Tymoshenko in complicated circumstances. "This is linked ... to Ukraine's internal political situation," Putin said.
"As it happens in such cases, the agreements which are reached today may be called into question tomorrow."
Tymoshenko was viewed with caution by Moscow after she joined with Yushchenko in the 2004 "Orange Revolution" to overturn a victory for the Moscow-backed candidate in a presidential election.
But as her relations with Yushchenko have turned sour, she has softened her stance towards Moscow and criticised the president for backing Georgia too stridently. This week she suggested he lacked vigilance in investigating possible illegal arms deals.
In a further sign of her rift with Yushchenko, Tymoshenko's flight to Moscow was delayed on Thursday.
She told reporters that Yushchenko had taken over her plane without warning and used it for his own trip to western Ukraine. (Writing by Christian Lowe and Dmitry Solovyov; editing by Andrew Roche)
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