Ukraine's Customs Union Membership Off the Table

Russia has dropped the idea of luring Ukraine into the Customs Union by any means and is ready to discuss establishing a tripartite EU-Ukraine-Russia gas consortium through the Ukrainian gas pipeline, Kommersant reported September 26.

commenting the September 24 unofficial meeting between the Russian and Ukrainian presidents and the Russian prime minister in Moscow.

“Kiev will not integrate into the Customs Union. Look at our president, do you think he can bow?” a Ukrainian diplomat who participated in the talks told Kommersant.

Both Ukrainian and Russian officials, including those present at the September 24 unofficial summit between heads of state at the Russian presidential residence in Zavidovo, told Kommersant that the sides made a decision to concentrate on the energy issues, while discussing the fate of the Ukrainian gas pipeline.

Earlier, Kiev proposed Moscow to create a tripartite gas consortium together with the EU. Russia, on the other hand, insisted the agreement be bilateral. 

Presently, Russia’s position is not as firm, a Ukrainian diplomat told Kommersant. According to him, it has been agreed that officials from Russian gas giant Gazprom would meet with their Ukrainian counterparts from Naftogaz, as well as authorities from Russian and Ukrainian Ministries of Energy.

Ukraine has been trying to get Russia to review its 2009 gas contracts, saying that the gas price Ukraine pays to Russia is too high, while the transit fees are too low. The Naftogaz President Yevgeny Bakulin said that the Ukrainian side would be satisfied with a gas price of about $230 per 1,000 cubic meters instead of the current $354. Russia has said that the acting agreement corresponds to all the European gas market standards.