Gazprom and Turkmenistan to determine price formula for Turkmen gas by July 1

Gazprom and Turkmenistan agreed to clarify price formula for Turkmen gas purchase by July 1, 2006.

This was informed by vice-president of "Gazprom", general director of public corporation "Gazexport" Alexander Medvedev.

Turkmenistan will be the only gas supplier to Ukraine, he noted. Gazexport will supply 65 milliards cubic meters of Middle Asian and 17 milliards cubic meters of Russian gas to RosUkrEnergo company, which will sell the gas to Ukrainian consumers.

Medvedev informed that "retail price for RosUkrEnergo will depend on coordinated price formula for Turkmen gas". Price for RosUkrEnergo will be calculated by "European" formula, basing on prices for diesel and residual fuel oil.

Medvedev refused to name price for Middle Asian gas, sold by Gazexport to RosUkrEnergo, referring to confidentiality of agreement.

As a reminder Gazprom and Turkmenistan concluded treaty about purchase of gas at price of $65 for 1000 cubic meters in the end of 2005. Recently several Russia mass media informed that Turkmenistan can rise price for gas to $85. Gazprom didn`t exclude the possibility that Turkmenistan will put forward the proposal about revision of the price.

sections: Economics, World News