Moscow: Former Soviet republic of Ukraine
on Wednesday agreed to extend the lease of Russian naval base in
Crimea till 2042, in exchange for cheaper natural gas.
During the maiden Ukraine visit of President Dmitry
Medvedev today, the two countries made the announcement.
The two countries have fought two `gas wars` in their
dispute over the price of the natural gas and transit fees
affecting supplies to the European customers.
Under the deal struck today after negotiations in
Kharkov between Medvedev and his Ukrainian counterpart Viktor
Yanukovych, Russia would be able to retain its Black Sea Fleet
base in Sevastopol on the Crimea peninsula for another 25
years after the expiry of initial lease in 2017, ITAR-TASS and
RIA Novosti reported.
Medvedev stressed the importance of the base as key to
regional security and vowed assistance in developing
Sevastopol`s socio-economic infrastructure in an effort to
promote public relations and improve the Russian Navy`s image.
"I will instruct the Defence minister and the Black
Sea Fleet commander to draft an agreement on the participation
of our base in the socio-economic development of Sevastopol,"
Medvedev was quoted as saying.
Yanukovych, who was elected new president of Ukraine
this year, has pledged to move his country away from the
pro-Western stance of his predecessor Viktor Yushchenko, who
vowed that Russia would have to look for a new main base for
its Black Sea Fleet once the current deal expires in 2017.
In exchange Ukraine will receive a discount of USD 100
per 1,000 cubic meter of Russian natural gas carrying a price
tag of USD 330 and a 30 percent discount on other prices,
Russian President Dmitry Medvedev announced.
The ex-Soviet republic is currently purchasing Russian
natural gas at the average annual price of USD 337 per 1,000
cubic meters.
"Discounts for Ukraine will come into effect from
April this year," Yanukovych said.
The discount will apply to 30 billion cubic meters of
Russian natural gas to be supplied to Ukraine in 2010 and 40
billion cubic meters in subsequent years.
The amendments to the gas deal between Russia and
Ukraine also annuls provisions on penalties, which had never
been applied.
Although the Russian gas monopoly Gazprom would lose
millions of dollars under the deal, but the political gains
would be much higher, especially in view of the extension of
Black Sea base lease, Kommersant FM radio said.
PTI
