Miller said Gazprom had been in talks with Ukraine over a long-term gas supply contract for the past few days. It is the overdue debt that hampers the negotiations, he explained.
"At the corporate level the degree of readiness is high. All the necessary documents are in place," he said. Under an agreement, the countries are to begin settlements for gas supplies at free market prices, based on the formula effective for the European states.
Ukraine has so far failed to meet a number of conditions, such as the transfer to a new system of relations, to direct supplies to Naftogaz, and the signing of contracts under which gas would be delivered at fixed prices in the first two years, in 2009 and 2010.
"The debt issue remains unsettled," Miller said.
The debt is astronomical, so the question "Where is the money?" is absolutely appropriate.
"We see no progress in relations with Ukraine, and we have no certainty that we shall ever see the money," Miller said.
Medvedev replied that in that case, all measures available in bilateral relations should be employed - contractual and administrative.
Russia says pay up
With both countries impacted by the global economic crisis, Russia has decided to play an old hand:asking for debt repayment. Russia (Gazprom) now says that Ukraine will pay $400 per 1000 cubic meters of gas next year. Tymoshenko rejects Russia's claim. The Russian Ambassador to Ukraine, Viktor Chernomydin, called it high and said that the two sides should negotiate on this. However, RIA Novosti reports that Yushchenko ordered the government to pay the gas debt. This may be a specific retaliation for UKrainian arms to Georgia, but Russia does this often enough that it does not matter why they are doing it. Itar -Tass excert below concerning the debt issue.
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