Russia Gazprom: no gas for Ukraine without contract

MOSCOW, Nov 22 (Reuters) - Russia's gas firm Gazprom wwould like to avoid supply cuts to Ukraine in 2009 but will not continue deliveries without a new contract, Gazprom's spokesman Sergei Kupriyanov said on Saturday.

Russia has often threatened to cut gas supplies during pricing disputes with Ukraine and has fulfilled the threat in early 2006, briefly halting supplies to Europe, 80 percent of which go via Ukrainian territory.

Gazprom said on Thursday Ukraine must repay a $2.4 billion gas debt before new supply contracts are signed, raising fears the two sides face another battle in their gas war.

"We would like to avoid such a scenario (this time). We have time to reach an agreement before the new year but as you understand we cannot supply gas without a contract," Kupriyanov told Vesti 24 television channel.

Ukraine's state energy firm Naftogaz said its debt to RosUkrEnergo, a Russian-Ukraine intermediary gas trader, co-owned by Gazprom, amounts to only $1.27 billion.

Kupriyanov said the Ukrainian side counted only Sept-Oct debt while Gazprom included November debt as well as penalties. He denied there were major differences in the overall debt estimates.

"Everybody understands pretty well who owes to whom and how much," Kupriyanov said.

Ukraine and Russia are engaged in talks on a 2009 price for gas, currently set at $179.50 per 1,000 cubic metres. Kupriyanov said a market price for 2009 gas deliveries was $400 per 1,000 cubic metres.

GAS BURNING IN FURNACES

A memorandum signed in October by Prime Ministers Vladimir Putin and Yulia Tymoshenko sees a gradual transition to market pricing and direct supplies without intermediaries such as RosUkrEnergo.

Kupriyanov said direct supplies as well as lower gas prices for Ukraine in 2009 were only possible if other conditions set out in the memorandum, such as debt redemption in full, were met. He said Russia would not discount for the global crisis.

"If Ukraine's consumption drops, our deliveries will fall as well but it is not happening. Gas is burning in furnaces of Ukraine's economy as it had been before, therefore the crisis has nothing to do with it," Kupriyanov said.

Gazprom supplies a quarter of Europe's gas needs and sends one fifth of its total exports via Belarus with the rest going via Ukraine, giving both countries extra leverage over the firm in pricing disputes.

Kupriyanov said Gazprom's financial standing was sound, debt portfolio "healthy" with the share of short term loans only 14 percent, while a revision of the capital investment plan will not concern priority projects such as the Nord Stream pipeline. "We can talk about not receiving some of expected profit (from domestic operations). The demand is falling, warm weather in November has also played a role," Kupriyanov said.

He said the firm was in intense talks with Belarus and Moldova to switch to rouble payments. Gazprom supplied 15.32 bcm of gas to Belarus at $128 per tcm in Jan-Sept 2008 and 1.9 bcm to Moldova.

With the Russian rouble under depreciation pressure as a result of falling prices for oil, Russia's main export commodity, Russia is seeking to boost international demand for roubles from its ex-Soviet neighbours.

"The rouble is the most reliable currency. Our expenditure is also in roubles. Matching our revenues and expenses is a reasonable thing," Kupriyanov said.

He added that the transition will require changes to contracts with Belarus and Moldova. He said Russia was not yet talking about switching to roubles with Ukraine but it was "theoretically possible". (Reporting by Gleb Bryanski, Editing by Peter Blackburn)