Ukrainian Premier Defends Gas Deal With Russia

Ukrainian Prime Minister Yuriy Yekhanurov has strongly defended the gas deal signed by Ukraine’s national oil and gas company Naftohaz Ukrayiny with the Russian gas monopoly Gazprom on 4 January. Yekhanurov was speaking in parliament, which had demanded explanations of the agreement from the government. The speech was broadcast live by Ukraine’s 5 Kanal television.

Yekhanurov described the deal, which raised the price of gas deliveries to Ukraine from 50 to 95 dollars and also the gas transit fee from 1.09 to 1.6 dollars per 1,000 cu.m. per 100 km, as a compromise with Russia, which had been demanding a price of 230 dollars.

“The talks were difficult. Each party displayed toughness and persistence,” Yekhanurov said. “Finally, the signed accords are a compromise. The talks are continuing. Necessary corrections and explanations will be made, corresponding foreign economic contacts will be signed. I would like to assure you that the government has been guided and will continue to be guided in its actions exclusively by the defence of Ukraine’s national interests.”

He dismissed criticism of the deal by the opposition and former Prime Minister Yuliya Tymoshenko as “politicking” ahead of the election. Tymoshenko had said Ukraine should have rejected all Russian attempts to increase the price and should have taken Gazprom to court.

“We could have dug our heels in, as some political radicals are demanding, and could have pushed for the unconditional fulfilment of existing accords. Yes, we were sure indeed that we would manage to prove to courts that we are right, in particular to the Stockholm international court. But proceedings there take months and possibly even years. Who would have wanted proof that we are right after several years without gas and with ruined industry and social sector? Perhaps those who are used to sacrificing the interests of this country and these people for the sake of petty politicking and some imaginary benefits ahead of elections,” Yekhanurov said.

“On the other hand, a reputation is sometimes more important than specific results at a given time. Thanks to its constructive stance, Ukraine has maintained and even improved its international reputation as a reliable partner. Our position was backed by the EU. Under such conditions, giving up talks would have meant betraying this country’s historical choice and its civilized prospects.”

He insisted the gas deal was advantageous for Ukraine – mainly in terms of a relatively low gas price. He dismissed concern about the intermediary chosen to supply gas to Ukraine: “Given the great amount of speculation on this issue, I would like to point out the following: in the greater scheme of things, we don’t have to worry about who sells gas to whom before it reaches our border. What we should be interested in is the entry price, which is 95 dollars per 1,000 cu.m. of natural gas, which is not a bad price considering European prices. It is none of our business how many times this gas is sold and at what price before it reaches our border.”

Yekhanurov confirmed President Viktor Yushchenko’s plans to discuss gas with Russian President Vladimir Putin during inauguration festivities in Kazakhstan tomorrow.

The interview lasted for about 15 minutes. It will be processed as an excerpt by 1500 gmt today.