Ukrainian PM : No gas wars with Russia

Ukrainian Prime Minister Mykola Azarov excludes gas war between Russia and Ukraine because of disagreements on the price of fuel. "No one will ever live to see any war, including gas [war] with our strategic partner - Russia," Azarov said in an interview to Inter TV channel. According to Azarov, Ukraine will fulfill a valid contract despite the disagreements until there is an agreement on a new price. Ukraine raised the stakes in its spat with Russia over gas prices on Friday, announcing plans to scrap national energy company Naftogaz and tear up its existing gas contracts with Moscow. Ukrainian President Viktor Yanukovich instructed Prime Minister Mykola Azarov to set out plans for reorganizing national energy company Naftogaz by October 1. Ukraine has been trying to revise a 2009 agreement with Russian gas giant Gazprom which tied the gas price to the price for oil boosting Kiev's bill. Former Prime Minister Yulia Tymoshenko is now on trial for exceeding resigning it. Ukraine said on Tuesday that it would slash Russian gas purchases by a third to 27 billion cubic meters in 2012, from 40 bcm this year. However, Gazprom said that under the contract, based on a 'take-or-pay' principle, Kiev would have to pay for 33 bcm of gas regardless of actual purchases. Azarov said that the 2009 deal violated a 2004 agreement, which says the two countries should revise the volumes of gas. Last week Russian President Dmitry Medvedev said Ukraine might get discounts for gas if joined the Customs Union of Russia, Belarus and Kazakhstan and agreed the acquisition Naftogaz by Gazprom. But Azarov said Ukraine wanted no discount, but a fair contract.