Russia will not change its position on gas supplies at world prices to Ukraine, Russian Deputy Prime Minister Alexander Zhukov said on Thursday.

"Our position is that it's necessary to transfer to world prices in gas trade, including with Ukraine. We need to transfer to transparent, market relations," Zhukov told reporters here , according to the Itar-Tass news agency.

In response to the question how Ukraine will be able to pay higher gas prices, the deputy premier said it is a question for the Ukrainian government.

Zhukov believes that the issue of setting gas prices for Ukraine and the procedure for exacting VAT tax in the country of destination should be considered in package.

He underlined that levying the VAT in the country of destination is world practice, as is the delivery of goods at world prices.

The deputy premier reiterated that it is necessary for Russia to supply gas at world prices, and this position has been declared and defined.

On December 8, Russian President Vladimir Putin said at a meeting with the economic bloc ministers that "in the beginning of this year, Russia and Ukraine transferred to tax settlements for gas, gas condensate and oil in the country of destination."

According to the president, given the current gas price, direct pumping of money from Russia to the Ukrainian budget is worth some one billion dollars. "It's direct because we don't get anything from Ukraine in exchange. In effect, it's support of our Ukrainian friends," Putin said.

Under the new proposal of Russia's gas giant Gazprom, Ukraine would have to pay a full European price of 220-230 US dollars per 1,000 cubic meters of gas, taking into account a Ukrainian transit fee.

Kiev, which had been paying 50 US dollars per 1,000 cubic meters, had balked at Gazprom's previous proposal of 160 US dollars.

Ukraine has also countered that it has a contract with Russia through 2013 for the lower price, and would consent to only a gradual increase.

Source: Xinhua