Protracted talks between Moscow and Kiev...
In exchange, the Russian Black Sea Fleet will remain in the Crimea for another 25 years. Top officials do not conceal the fact that the two agreements are linked, as highlighted by the April 22 summit involving Russian and Ukrainian Presidents Dmitry Medvedev and Viktor Yanukovych in Kharkiv, eastern Ukraine.
President Medvedev said Black Sea Fleet and gas issues were only technically linked. "The discount will be applied against Russia"s rent for the deployment of its Black Sea Fleet and the naval base in Sevastopol. This is a technical, rather than political link, and involves a financial transaction only," Medvedev explained.
Trading gas for a naval base explains a highly important point. It was the Russian government, rather than energy giant Gazprom, which gave a gas price discount to Ukraine. The 30% discount will be financed out of the federal budget as no 30% export duties will be levied on the exports of Russian gas to Ukraine.