There are reports of some progress in the dispute between Russia and Ukraine over gas prices which has been a further source of tension between the two countries.<br /><br />During talks in Berlin, the two governments are said to be considering payment by Ukraine of $2 billion of back debt by Thursday with a further $500 million to be paid in June.<br /><br />Russia’s Energy Minister Alexander Novak appeared up-beat about the proposal:<br /><br />“Our side is prepared, when we receive the payments, to continue negotiations until Friday about prices for future supplies to the Ukrainian site..”<br /><br />But Ukraine was less forthcoming saying they had until Wednesday night to to look at the proposal put forward by the EU’s energy Commissioner. <br /><br />“I only want to reiterate it’s not a question of payment but it’s about a fair market price. The payment is not an issue and if a fair price is fixed Ukraine will pay its debts,” said Ukrainian Energy Minister, Yuri Prodan.<br /><br />And that’s the crux of the matter – Ukraine wants to change the conditions of a 2009 contract that locked Kyiv into buying a set volume of gas whether it needs it or not at $485 per 1,000 cubic metres – the highest price paid by any country in Europe.<br />.
