January 1, 2006	Sunday	Ziqa’ad 29, 1426

MOSCOW, Dec 31: Russian President Vladimir Putin offered on Saturday to delay a steep price rise in natural gas for Ukraine in an 11th-hour bid to resolve a bitter row before Moscow cuts supplies to the ex-Soviet republic.

Mr Putin said Ukraine could receive Russian gas at existing lower prices until April and then switch to the fourfold increase being demanded by state-controlled gas giant Gazprom.

Ukraine had until the end of Saturday to accept, he said.

“I instruct the government and Gazprom to ensure gas deliveries in the first quarter of 2006 with the conditions and rates of 2005, on the condition that before the end of today the Ukrainian partners sign the contract with Gazprom’s offer for switching to market prices in the second quarter,” Mr Putin said.

Gazprom said it would cut off supplies to the country of 48 million people if there were no deal by Sunday.

With just hours to go, Ukrainian President Viktor Yushchenko had not given a definitive answer, saying only that Moscow and Kiev had “moved to a new constructive phase” and “are listening to each other.”

The row has sparked concern in western Europe, which is heavily dependent on Russian energy supplies, and cast a shadow over the start to Russia’s 2006 presidency of the Group of Eight (G8) industrialized nations’ club, during which Moscow wants to present itself as a reliable energy partner.

Andrei Illarionov, Putin’s long-time economic adviser, who resigned this week to protest what he said was the lack of freedom in Russia, accused Moscow of using energy as a “weapon”.

Gazprom wants Ukraine to pay $230 (195 euros) per 1,000 cubic metres (35,335 cubic feet) of gas from the start of 2006, up from the current $50. The company says this price reflects standard world rates.

Ukraine says it is ready to pay more but not so quickly and is offering up to $80 in a preliminary transition period. Moscow has flatly dismissed the offer.

Gazprom, which controls a third of the world’s gas reserves, says it is ready to turn off supplies at 10am Moscow time (0700 GMT) on Sunday if Kiev still refuses to deal.

“All we need is the command,” said Alexander Glazkritsky, head of the Mostransgaz centre controlling the pipeline near the Russian-Ukrainian border.

Officials in Kiev say industrial centres will see a drop in supplies, but ordinary people should notice no difference, as the country has enough gas reserves to last the bitterly cold winter.—AFP