In exchange of participation in Ukrainian energy projects, Russia considering gas discount for Ukraine

Energy-ProjectsAccording to some media reports, Russia has said that it's considering a gas discount for Ukraine in exchange for being allowed to participate in Ukrainian energy projects.

The state-run news agency RIA Novosti has reported that Russian Deputy Prime Minister Igor Sechin said on Saturday, "One of the questions we are definitely discussing is the possibility of a [gas] discount."

Adding Russia could consider participating in "hydro-power generation and atomic industry in Ukraine," which relies heavily on nuclear energy, Sechin said, "We have many interests, including in the energy sector. We also have strategic interests."

Soviet media also reported that word of the discount came a day after the Russian and Ukrainian governments approved new gas agreements setting a new pricing structure, based on Ukrainian President Viktor Yanukovych's proposals.

He would meet with Yanukovych next week to discuss cooperation, particularly in the gas sector, Russian President Dmitry Medvedev said.

Ukraine considered the current gas prices too high and Russia would compromise in exchange for being able to participate in Ukraine's energy sector, Medvedev further added.

Yanukovych, who is less than three months into his first term, has promised to improve relations with Russia and renegotiate a January 2009 agreement on gas supplies that increased the price Ukraine paid for Russian gas.

RIA Novosti further reported that Ukrainian First Deputy Prime Minister Andriy Klyuyev noted a 20 percent discount on gas offered by Russia expired at the end of 2009 and said the current price could be "ruinous" for his country's economy. (With Inputs from Agencies)