13.07.2012
Putin: No progress on new gas deal with Ukraine
Russian President Vladimir Putin, after meeting with Ukrainian President Viktor Yanukovych, said the sides have not reached an agreement on new terms for Russian gas supplies, but said talks would continue. The two presidents signed a strategic partnership pact and several other agreements including one on the delimitation of the maritime border in the Kerch Strait.
Concord Capital comments on the news: Overall, the tone of the meeting appeared to be cordial and productive, though as we anticipated, there was no visible progress on the gas issue. We hold that a breakthrough on natural gas supplies, particularly with a Ukrainian parliamentary election approach in October, will be difficult until toward the end of the year.
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