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Ukrainian Budget for 2012 to be Adopted with High Gas Price

The government of Ukraine considers it possible to adopt the state budget for 2012 with the maximum possible target price and in case of reaching the agreement with Russia on the price reduction – to insert an amendment into the document, the prime-minister Nickolay Azarov told the journalists.

At the same time he did not specify how high the target price they are going put into the budget. The draft budget which was passed in a first reading in the Verkhovnaya Rada (the Supreme Council of Ukraine) is calculated on the basis of the average annual price for Russian gas – 414-416 American dollars for 1 thousand cubic meters. The further consideration of the document is delayed due to the hope on negotiating the gas price reduction.

“The budget must be realistic which means that if we are to pay 400 American dollars we will pay that price, because we will have no other option”, — Azarov says.

“If we manage to come to an agreement with Russia the Ministry of Finance in cooperation with the Ministry of Economy will enter amendments into the budget”, — the head of the Ukrainian government added.
The price of Russian gas for Ukraine in the first quarter of 2012 provided that Kiev and Moscow do not reach a compromise in reconsidering gas contracts may comprise 456 dollars for one thousand cubic meters, the first Vice Prime-minister and the Minister of the Economic Development and Trade of Ukraine Andrey Klyuev said earlier.

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