OREANDA-NEWS. January 12, 2009. Following the signature by all parties of the agreement on procedures for monitoring the transit of Russian gas via Ukraine to consumers in Europe, Russian President noted the need to take every measure to ensure that the international observers begin their work at the monitoring sites as soon as possible.

As soon as the monitoring procedures are in place Russia will be able to resume gas deliveries to European consumers via Ukraine and gradually restore the normal transit regime, said Mr Medvedev.

The President also noted that much time was lost as a result of Ukraine making reservations that were not coordinated with Russia and contradicted the protocol on monitoring procedures.

Mr Medvedev confirmed that Russia is ready to resume immediate negotiations between OAO Gazprom and National Joint Stock Company Naftogaz of Ukraine on concluding a contract for supplies of Russian natural gas for Ukraine’s domestic market in 2009. These deliveries would be made at market European prices, the President said.

Mr Medvedev said that the provisions of the Memorandum on Cooperation in the Gas Sector signed in October 2008 by the Russian Government and the Ukrainian Cabinet of Ministers were no longer in effect and could not serve as the basis for further negotiations.

The Russian and Ukrainian Presidents instructed their governments to activate talks on Russian gas sales to Ukraine in 2009.

Mr Medvedev said that Ukraine needs to settle in full its debts to Gazprom for gas delivered in 2008 and for gas illegally misappropriated in 2009.

Russia also proposed a number of different means to ensure Ukraine’s ability to pay for Russian gas supplies, including by means of Ukraine obtaining a loan from the European Union.

Mr Medvedev said that other types of economic relations aimed at ensuring Ukraine’s ability to pay for Russian gas deliveries can also be considered.

The conversation took place on Ukraine’s initiative.