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September 16, 2012

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Russia issues Ukraine warning

A TOP Russian official said yesterday Ukraine will continue paying a high price for natural gas imports unless it joins a Moscow-dominated alliance.

Kiev, which relies on Russian natural gas for most of its energy needs, has long been courting Moscow to get a discount for gas imports since a 2009 agreement significantly increased the price for the gas Ukraine receives from Russia.

Russia's deputy prime minister, Arkady Dvorkovich, said in the Ukrainian city of Yalta that Ukraine may expect a discount only if it joins a Russia-dominated economic alliance. Ukraine has resisted such overtures, fearing membership in the Moscow-led Customs Union would dent chances of closer ties with the EU.

"If it (Ukraine) wants beneficial relations with Russia, maybe the Customs Union is the choice," Dvorkovich said. "People should understand that all disagreements, all barriers, all administrative restrictions, and all misunderstandings among countries come at a cost."

Moscow opposes Kiev's efforts to integrate into the EU and move away from the Kremlin's sphere of influence. So far Kiev has resisted offers to join the Customs Union, and Ukraine's Foreign Ministry spokesman Oleh Voloshin said its pro-Western course is not subject to negotiation.






 

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