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[January 02, 2006]

WTO urges Russia, Ukraine to pay market price for gas

(Comtex Energy Via Thomson Dialog NewsEdge)PARIS, Jan 2, 2006 (Xinhua via COMTEX) -- The director general of the World
Trade Organization (WTO), Pascal Lamy, said here on Monday that
both Russia and Ukraine, in a gas dispute, should pay their energy
at the market price.

One of the stakes of this price dispute is "the waste of energy
in Russia and Ukraine of today...These countries should pay their
energy at the price of today's energy to improve the efficiency of
their economy," said Lamy at the French news channel LCI.

"Russia and Ukraine are candidates for the entry to the WTO and
their dispute would be easy to understand and tackle if they are
both members of this organization," said Lamy.

Russia's natural gas monopoly Gazprom halted sales to Ukraine
on Sunday, which led to a fall in pressure in all the pipelines
and limit the overall supply of gas to Ukraine and Europe.

Gasprom had asked Ukraine to pay quadruple the amount it
previously paid for Russiasn gas, which accounts for about a third
of the consumption in the country.

Gasprom supplies about one-quarter of the gas consumed in
Europe, most of which goes through pipes that cross Ukraine.

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