Ukrainian Premier Hopeful of Resolving Gas Crisis
Prime Minister Yuliya Tymoshenko has pledged to ensure that gas transit to Europe is not affected by Russia’s recent cut in deliveries to Ukraine. Speaking at a news conference in Kiev on 5 March, Tymoshenko said talks have resumed between Ukraine’s national energy company Naftohaz and Russia’s Gazprom. She also said that the government today approved a resolution to make it possible for Ukraine to pay for Russian gas even in the absence of formal contracts with Russia.
The news conference was broadcast by 5 Kanal TV.
“I would like to take this opportunity to assure all consumers of natural gas: gas will keep on coming as scheduled, calmly and without obstacles or interruptions to consumers both in Ukraine and the European Union. Ukraine will ensure stability in the gas market,” Tymoshenko said.
“Ukraine will pump to the EU all gas that Russia hands it over for transportation. This is absolutely certain and there can be no doubt about this. As of today, Naftohaz has been exceeding the targets for Russian gas exports to Europe,” she said later, responding to a journalist’s question.
“Naftohaz pumps as much Russian gas to Europe as Russia gives it for transit,” Tymoshenko said. “We cannot add or subtract anything, we only transport [gas]. If Russia wants to reduce its gas exports, it does. We’re not getting involved in such matters,” Tymoshenko said.
Cabinet’s resolution to facilitate gas payments
At a meeting on 5 March, the Ukrainian government passed a resolution aimed at clearing the gas debt to Russia, she said. “A resolution has been passed to settle payments for Russian gas. This is a very important document.”
“Today’s resolution makes it possible to pay for natural gas and not to accumulate debt in the absence of contracts. I think it will resolve the problem of payments,” Tymoshenko went on.
Russia accused of demanding more than agreed
She accused Russia of demanding that Kiev pay more than previously agreed for some of the gas it supplies to Ukraine. This is the reason why no gas supply contracts have been signed between the two countries, Tymoshenko suggested.
“You are aware that they have not signed any agreements or contracts with Ukraine, because they want Ukraine to pay 314 dollars per 1,000 cubic metres of a significant part of gas. This sort of agreement has never been reached,” the prime minister said.
Later in the news conference, Tymoshenko recalled announcements made late in 2007 that throughout 2008 Central Asian gas will cost Ukraine 179.5 dollars per 1,000 cu.m.
“Ukraine cannot agree to any other price, because this is the price declared last year. This is the price included in the Ukrainian budget, in all economic calculations without exception and in macroeconomic indicators. We simply cannot agree to a different price this year,” Tymoshenko said.
Talks resumed
Oleh Dubyna, the head of Ukraine’s national oil and gas company Naftohaz Ukrayiny, has discussed the situation with Gazprom head by phone “aiming to make a joint statement that the severe standoff in the system of supplying gas to Ukraine has been resolved”, Tymoshenko said.
“A group of negotiators will be formed in the near future to settle all problems associated with natural gas supplies to Ukraine.”
“I believe that the gas talks between Ukraine and Russia should clear up details. Such details can only be cleared up only if the heads and representatives of Naftohaz and Gazprom sit down for talks. I am sure that such talks will bring about a positive result,” Tymoshenko said.
No intermediaries
Tymoshenko also reiterated her opposition to the involvement of intermediaries, RosUkrEnergo and UkrGazEnergo, in the shipments of Russian gas to Ukraine.
“The Ukrainian government will not allow any intermediaries any more. We believe that Ukraine, Naftohaz, should buy natural gas directly from GazpromExport, without creating any additional, new and exotic intermediaries. Second, we do not any joint ventures to sell gas within Ukraine either. Naftohaz can sell gas easily and without any problems,” Tymoshenko said. “If Russia wants to sell some amount of gas to consumers in Ukraine, no problem. If Russia decides on such suppliers, I think they will be licensed like any other supplier.”
(Half of UkrGazEnergo shares are owned by Naftohaz Ukrayiny, and another half by RosUkrEnergo, a Swiss-registered company. In turn, RosUkrEnergo is co-owned by Russia’s Gazprom, and businessmen Dmytro Firtash and Ivan Fursin.)
Hopes for cooperation with president
Asked about any differences on gas between her and President Viktor Yushchenko, Tymoshenko said she hoped “the government and president will propose one agreed model for supplying Ukraine with natural gas without any artificially created intermediaries”.
This follows harsh criticism voiced by President Viktor Yushchenko of the Tymoshenko cabinet’s handling of the gas crisis. In particular, instructing Tymoshenko before her departure to Moscow on 20 February, President Yushchenko accused her cabinet of inaction in solving gas problems and said such actions amounted to “sabotage” (for details see “Ukrainian president instructs premier on gas before Russian visit”, Interfax-Ukraine news agency, Kiev, in Russian 0919 gmt 20 Feb 08).
Originally published by 5 Kanal TV, Kiev, in Ukrainian 1225 5 Mar 08.
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