The game of humiliation

During negotiations with Russia, to reduce the price of gas, Kiev received a “humiliating” proposal, President of Ukraine Viktor Yanukovych said in an interview with leading Ukrainian television channels. He noted that Ukraine will switch to cheaper European gas.

"Those proposals that we received, they are inconvenient for us, they are even humiliating for us, and we will never go to them. We cannot trade in the country, this is our principle," Yanukovych said.

Yanukovych touched on the issue of international economic integration. “National interests will always be the basis of Ukraine’s relations with both the European and the Customs Union,” the president emphasized.

According to Yanukovych, Ukraine needs to hold a referendum on joining the EU or the Customs Union. When a referendum is appointed, he did not specify. The President also said that Ukraine is ready to join some provisions of the Eurasian and Customs Unions, which do not contradict the NTU norms.

Yanukovych also commented on the recent situation on the customs border with Russia. According to him, Russian President Vladimir Putin was "discouraged" when Yanukovych informed him of the delay of Ukrainian goods. “He confirmed that, of course, this was not necessary to do this. But this is their internal question why this happened and who made it,” said Yanukovych.

In November 2011, the Minister of Energy and Coal Industry of Ukraine Yuri Boyko said that Ukraine informed Russia of the intention to purchase only 18 billion cubic meters of gas next year. Earlier, that Ukraine, in terms of price pressure, is forcedto reduce the purchases of Russian gas , said Yanukovych. He mentioned this particular figure.

The chairman of the State Agency for Investments and Management of National Projects, Vladislav Kaskiv, noted that the price of liquefied gas for Ukraine will be 20 percent lower than the price of Russian gas. Negotiations are underway on the supply of liquefied gas with five companies. The construction of LNG terminal has begun with the capacity of the first stage of 5 billion cubic meters. The second stage will double this volume.

The Gazprom Contract with Naftogaz applies the principle of "bei or pay", in accordance with which consumers must pay for the contracted volumes of gas, even if they receive less. Earlier, Gazprom has repeatedly stated that so far they have not been negotiating with Ukraine on a possible reduction in procurement. In June 2012, the head of Gazprom Alexei Miller noted that Kyiv should purchase 52 billion cubic meters.

In December 2011, Yanukovych said that the cost of Russian gas should not exceed $ 250 per thousand cubic meters. The basic price of Russian gas for Ukraine, laid down in the existing settlement formula, is almost twice as high as the prices required by the Ukrainian president.