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Kiev Assures of Delivery

KIEV — Ukraine, which transports most of the gas that Russia exports to Europe, will honor its obligations to maintain flows even if talks with Moscow on cheaper terms for its own gas imports fall through, a member of the government said Wednesday.

"If we manage to make a deal, it will improve our budget and if we don't, we can live with it," First Deputy Prime Minister Andriy Klyuev told reporters. "We will meet all our obligations … to the countries where we tranship [gas]."

Klyuev said the government, while hoping to negotiate cheaper Russian gas supplies for 2012, forecast the price of gas at $416 per 1,000 cubic meters, roughly the same as it was Wednesday. Media reports indicated this week that talks between Kiev and Moscow focused on Ukrainian gas pipeline ownership.


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