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Small to medium-sized enterprises support Gazprom's position on gas deliveries and transit via Ukraine
Small to medium-sized enterprises support Russian natural gas monopoly Gazprom's position on gas deliveries and transit via Ukraine, a Russian business association said Wednesday. "We back Gazprom's position," said Delovaya Rossiya (Business Russia) Chairman Boris Titov. Titov said Russia should look out for its interests and that the new gas price for Ukraine was justified. "We should uphold our economic interests," he said. "We should show Ukraine that it cannot base its economic policy on cheap raw materials from a neighboring country." In the past five years, Gazprom has supplied natural gas to Ukraine for $50-$60 per 1,000 cu m. European gas prices have nearly doubled since, prompting Gazprom to set a market price of $160. Ukraine insists Gazprom pay transit fees of $3.50 per 1,000 cu m per 100 km against the current $1.09. If no agreement is achieved, all parties, Russia as a gas supplier, Ukraine as a gas transporter and Europe as a gas consumer, will lose in the end, Titov said. He also said Russia could find alternative ways for transporting gas to Europe bypassing Ukraine. On Tuesday, Gazprom and Ukrainian national gas company Naftogaz again failed to agree on gas deliveries for 2006. "Another round of talks between Gazprom and the Ukrainian delegation brought no result, despite the Ukrainian leadership's assertions to shortly resolve the issues of gas supplies and transit on the basis of market principles," Gazprom said in a news release.
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