Putin sets duty-free gas for Ukraine

Updated: 2010-05-01 05

(Xinhua)

Comments Print Mail Large Medium Small

Twitter Facebook Myspace Yahoo! Linkedin Mixx

Russian Prime Minister Vladimir Putin signed on Friday a decree on the zero tariff gas for Ukraine, lowering the gas price by 30 percent.

"I have informed the Ukrainian prime minister about signing a resolution, which sets the zero rate of the customs duty on natural gas supplied to Ukraine," Putin said after the meeting of the Russia-Ukraine Interstate Commission's Economic Cooperation Committee.

Under the gas-for-fleet agreement reached by Russian and Ukrainian leaders last week, Russia agreed to give a 30 percent discount on natural gas to Ukraine. In exchange, the Russian Black Sea fleet will remain in the Crimea for anther 25 years.

According to the agreement, Ukraine will receive a discount of 100 U.S. dollars per 1,000 cubic meters on natural gas, if the price is not below 330 dollars. But if the price goes below 330 dollars, the discount will be stand at 30 percent.

On Friday's meeting, Putin also proposed a union of Russian gas giant Gazprom and Ukrainian gas monopoly Naftogaz, with the purpose to promote the gas cooperation between the two countries.