MOSCOW, Russia -- Russia considers unilateral review of its gas contracts with Ukraine unacceptable.
This is stated in the transcript of a working meeting between Russian President Dmitry Medvedev and Alexey Miller, the chairman of the Gazprom gas company (Russia).
"We must respect the agreements that were concluded. This also applies to the Russian Federation and Gazprom. It also applies to our Ukrainian partners. Any calls for some sort of unilateral measures and reviews should be imposed on the ‘fabric’ of agreement and not otherwise," said Medvedev.
Miller said that he exchanged views on the trends developing on the gas market during a meeting with President of Ukraine Viktor Yanukovych.
"On the part of Gazprom, it was stated that the current contract is based strictly on the market price formula," he said.
He informed the President of Russia that possible new forms of cooperation that could lift Ukrainian-Russian cooperation to a new level were discussed during the meeting.
Medvedev stressed that Ukraine to Russia is not an unfamiliar, distant partner but a very close, brotherly country that presently has many economic problems and he added that he has an agreement with Yanukovych to consider the possibility of employing advanced forms of cooperation, including cooperation in the gas industry.
As Ukrainian News earlier reported, the gas contract that was signed in 2009 provides for the possibility of its termination through the Stockholm arbitration panel.
Monday 30 May 2011
Decline In Press Freedom As Yanukovych Tightens Grip On Media
KIEV, Ukraine -- Ukrainian publications complain of interference and attempts to suppress stories
For A country languishing in 121st place in the latest ranking on media independence, Ukraine made a lot of noise about World Press Freedom Day this month.
The country’s two main politicians issued competing paeans to the nation’s journalists and lauded them as pillars of its democracy, even as opposition leader Yulia Tymoshenko accused president Viktor Yanukovych of trying to silence his critics and turn the country into an autocracy.
In rating Ukraine’s media alongside those of Colombia and the Seychelles, Freedom House noted the country’s “significant decline in press freedom” since Yanukovych took office last year and grabbed the main levers of political and financial power for himself and his allies.
Ukrainian publications complain of growing interference from officials and attempts to suppress stories that are critical of Yanukovych and his cronies.
Some cite a rise in physical attacks against reporters covering sensitive issues, and note that no one has been charged over the disappearance and suspected murder of investigative journalist Vasyl Klymentyev last August.
“We should ensure the completion of investigations into cases linked to the disappearance of journalists,” Yanukovych declared on World Press Freedom Day.
“The authorities will create conditions to allow journalists to feel free in our country. An independent Ukraine is not possible without an independent press.”
Few in Ukraine’s media will be reassured by such platitudes, but they carried added resonance due to Yanukovych’s sudden interest in Ukraine’s most notorious murder of recent years – the abduction and beheading of reporter Georgy Gongadze.
Gongadze’s headless body was found in woods outside Kiev in November 2000, six weeks after he vanished from the city, during the presidential reign of the less-than-media-friendly Leonid Kuchma.
Days later, an opposition leader revealed what he claimed were recordings of conversations between Kuchma and top aides, taped secretly by a presidential bodyguard.
On the tapes, a man who sounds like Kuchma orders officials to “deal with” Gongadze and suggests that he be “kidnapped by Chechens”.
Kuchma said the recordings had been doctored and denied involvement in Gongadze’s murder, but public anger over the killing helped inspire the December 2004 Orange Revolution, which brought to power pro-western leaders who promised to crack the case.
In March 2005, they announced the arrest of senior police officers for murdering Gongadze under orders from ex-interior minister Yuri Kravchenko.
Days later, Kravchenko was found dead at his dacha.
Despite suffering two gunshot wounds to the head, he was deemed to have killed himself.
Two of Kravchenko’s close colleagues also died before they could be questioned about the case.
Three police officers were jailed in 2008 for the killing of Gongadze, and the following year investigators finally tracked down Olexiy Pukach, the former interior ministry intelligence chief who had been on the run from charges of alleged involvement in the murder.
This elaborate web unexpectedly entangled one of Ukraine’s biggest political beasts last month, when Kuchma himself was charged with giving illegal orders to interior ministry staff that led to Gongadze’s murder.
Ukrainians, though well used to dramatic reversals of political fortune, were stunned; few had expected Yanukovych to turn on Kuchma, with whom his relations seemed cordial.
Even fewer believed the surprise development was about justice rather than politics.
The main theories are that Yanukovych is punishing Kuchma for failing to back him strongly enough during the Orange Revolution; or he is putting indirect pressure on Kuchma’s former chief of staff, the influential parliamentary speaker Volodymyr Lytvyn, or on Kuchma’s son-in-law Viktor Pinchuk, one of Ukraine’s richest tycoons.
Alternatively, the president may be trying to distract public attention from rampant corruption, stalled reforms and a stagnant economy, critics say.
Tymoshenko believes the Kuchma case is intended to defuse western criticism that Yanukovych is using Ukraine’s legal system as a weapon to neutralise personal enemies.
Prosecutors loyal to the president have opened several criminal cases against Tymoshenko and her allies, one of whom has been granted political asylum in the Czech Republic due to fears that he would not receive a fair trial in Ukraine.
It was particularly odd this month to hear Yanukovych, who previously showed little curiosity about the murder, pledge to “do everything to ensure that the investigation into the death of journalist Georgy Gongadze is brought to a conclusion and the guilty are punished”.
On the same day, Tymoshenko lauded reporters for risking their jobs and their lives “to convey the truth to people . . .”. It is becoming routine in Ukraine’s tawdry political world to invoke the ghost of Gongadze.
Finding out who ordered his murder, on the other hand, seems as unlikely as ever.
For A country languishing in 121st place in the latest ranking on media independence, Ukraine made a lot of noise about World Press Freedom Day this month.
The country’s two main politicians issued competing paeans to the nation’s journalists and lauded them as pillars of its democracy, even as opposition leader Yulia Tymoshenko accused president Viktor Yanukovych of trying to silence his critics and turn the country into an autocracy.
In rating Ukraine’s media alongside those of Colombia and the Seychelles, Freedom House noted the country’s “significant decline in press freedom” since Yanukovych took office last year and grabbed the main levers of political and financial power for himself and his allies.
Ukrainian publications complain of growing interference from officials and attempts to suppress stories that are critical of Yanukovych and his cronies.
Some cite a rise in physical attacks against reporters covering sensitive issues, and note that no one has been charged over the disappearance and suspected murder of investigative journalist Vasyl Klymentyev last August.
“We should ensure the completion of investigations into cases linked to the disappearance of journalists,” Yanukovych declared on World Press Freedom Day.
“The authorities will create conditions to allow journalists to feel free in our country. An independent Ukraine is not possible without an independent press.”
Few in Ukraine’s media will be reassured by such platitudes, but they carried added resonance due to Yanukovych’s sudden interest in Ukraine’s most notorious murder of recent years – the abduction and beheading of reporter Georgy Gongadze.
Gongadze’s headless body was found in woods outside Kiev in November 2000, six weeks after he vanished from the city, during the presidential reign of the less-than-media-friendly Leonid Kuchma.
Days later, an opposition leader revealed what he claimed were recordings of conversations between Kuchma and top aides, taped secretly by a presidential bodyguard.
On the tapes, a man who sounds like Kuchma orders officials to “deal with” Gongadze and suggests that he be “kidnapped by Chechens”.
Kuchma said the recordings had been doctored and denied involvement in Gongadze’s murder, but public anger over the killing helped inspire the December 2004 Orange Revolution, which brought to power pro-western leaders who promised to crack the case.
In March 2005, they announced the arrest of senior police officers for murdering Gongadze under orders from ex-interior minister Yuri Kravchenko.
Days later, Kravchenko was found dead at his dacha.
Despite suffering two gunshot wounds to the head, he was deemed to have killed himself.
Two of Kravchenko’s close colleagues also died before they could be questioned about the case.
Three police officers were jailed in 2008 for the killing of Gongadze, and the following year investigators finally tracked down Olexiy Pukach, the former interior ministry intelligence chief who had been on the run from charges of alleged involvement in the murder.
This elaborate web unexpectedly entangled one of Ukraine’s biggest political beasts last month, when Kuchma himself was charged with giving illegal orders to interior ministry staff that led to Gongadze’s murder.
Ukrainians, though well used to dramatic reversals of political fortune, were stunned; few had expected Yanukovych to turn on Kuchma, with whom his relations seemed cordial.
Even fewer believed the surprise development was about justice rather than politics.
The main theories are that Yanukovych is punishing Kuchma for failing to back him strongly enough during the Orange Revolution; or he is putting indirect pressure on Kuchma’s former chief of staff, the influential parliamentary speaker Volodymyr Lytvyn, or on Kuchma’s son-in-law Viktor Pinchuk, one of Ukraine’s richest tycoons.
Alternatively, the president may be trying to distract public attention from rampant corruption, stalled reforms and a stagnant economy, critics say.
Tymoshenko believes the Kuchma case is intended to defuse western criticism that Yanukovych is using Ukraine’s legal system as a weapon to neutralise personal enemies.
Prosecutors loyal to the president have opened several criminal cases against Tymoshenko and her allies, one of whom has been granted political asylum in the Czech Republic due to fears that he would not receive a fair trial in Ukraine.
It was particularly odd this month to hear Yanukovych, who previously showed little curiosity about the murder, pledge to “do everything to ensure that the investigation into the death of journalist Georgy Gongadze is brought to a conclusion and the guilty are punished”.
On the same day, Tymoshenko lauded reporters for risking their jobs and their lives “to convey the truth to people . . .”. It is becoming routine in Ukraine’s tawdry political world to invoke the ghost of Gongadze.
Finding out who ordered his murder, on the other hand, seems as unlikely as ever.
Ukraine And The EU Need Each Other
PARIS, France -- The current rapprochement with the EU affects Ukraine’s domestic and foreign policy. For Ukraine is quite isolated within the international system: while it is a member of the UN, Council of Europe, OSCE and WTO, it remains outside the major economic and security blocs of the North.
So every new step that can move Ukraine closer to the EU is beneficial; it would lead to an informal “securitization” and a gradual de facto – if not yet de jure – anchoring of Ukraine within the emerging trans-European political system.
Deepening cooperation with Europe could, in addition, send out important signals that would influence the course and pace of reform within Ukraine. Everyone agrees that Ukraine needs to fundamentally change its political, administrative, economic, social and education systems; but they do not agree on which socio-economic model Ukraine should embrace, and confusion sometimes undermines reforms.
But an enduring rapprochement between Kiev and Brussels means the European model would gradually become the dominant one; this would reduce time, costs and energy in designing, initiating and completing Ukraine’s urgently needed reforms.
The EU has detailed prescriptions of what countries must do to further integrate their economies with Europe’s, and this could be what Ukraine needs most right now.
There is a third dimension to further EU-Ukraine rapprochement, which has to do with the EU’s own wider aims: Ukrainian democratization could have repercussions on the former Soviet empire as a whole.
A sustainable Europeanization of Ukraine might impress the elites and populations of other post-Soviet countries, and could, for instance, induce Russia and Belarus to rethink the political paths their countries took after the break-up of the Soviet Union.
The Belarusians and Russians are culturally close to the Ukrainians, and would take a functioning law-based democracy in Ukraine seriously.
In the medium term, EU support for Ukrainian democracy, civil society and rule of law would also have a geopolitical dimension: Ukraine could even one day become the EU’s Trojan horse with regard to Russia.
Russians often view western advice on the need for democratization as irrelevant, if not subversive. In contrast, an EU-promoted re-democratization of Ukraine would be harder for isolationist Russians to reject.
If Ukraine demonstrates that a largely Orthodox eastern Slavic nation can create and sustain a democratic political system, this could trigger new Russian democratization, and Ukraine could even provide the means for the EU to bring Russia back into the European family.
Ukrainian-EU rapprochement has become even more relevant in view of recent worrying domestic developments. Since Viktor Yanukovych’s election as president, Ukraine’s social and cultural polarization, already high, has risen further.
An indication of the growing fragmentation of the Ukrainian national community is the rise of Oleh Tiahnybok’s nationalist, so-called “Svoboda” (Freedom) party.
Tiahnybok’s party calls itself an “All-Ukrainian Association” and proclaims its allegiance to Velyka Ukraina (Greater Ukraine). However, Svoboda is de facto a regional, and even potentially separatist, party because of its idiosyncratic historical discourse.
It has a strong base in the three Galician regions of L’viv, Ivano-Frankivsk and Ternopil, but has far less support elsewhere. Svoboda promotes a kind of nationalism that is disliked in much of the rest of Ukraine.
Instead of contributing to the formation of a modern Ukrainian polity, Svoboda alienates many Ukrainians. (There are other deepening divides within Ukraine, too, with regard to social, cultural, religious, educational and other issues.)
European integration is something that still unites Ukraine’s political, intellectual, economic and social elites, and a large part of the population.
Rejoining Europe might be the most important and least controversial way forward, and would win wide acceptance among the elites of western, central and eastern Ukraine (though less in the south).
Ukraine’s further, gradual integration into Europe is, for all of these reasons, of great importance.
So every new step that can move Ukraine closer to the EU is beneficial; it would lead to an informal “securitization” and a gradual de facto – if not yet de jure – anchoring of Ukraine within the emerging trans-European political system.
Deepening cooperation with Europe could, in addition, send out important signals that would influence the course and pace of reform within Ukraine. Everyone agrees that Ukraine needs to fundamentally change its political, administrative, economic, social and education systems; but they do not agree on which socio-economic model Ukraine should embrace, and confusion sometimes undermines reforms.
But an enduring rapprochement between Kiev and Brussels means the European model would gradually become the dominant one; this would reduce time, costs and energy in designing, initiating and completing Ukraine’s urgently needed reforms.
The EU has detailed prescriptions of what countries must do to further integrate their economies with Europe’s, and this could be what Ukraine needs most right now.
There is a third dimension to further EU-Ukraine rapprochement, which has to do with the EU’s own wider aims: Ukrainian democratization could have repercussions on the former Soviet empire as a whole.
A sustainable Europeanization of Ukraine might impress the elites and populations of other post-Soviet countries, and could, for instance, induce Russia and Belarus to rethink the political paths their countries took after the break-up of the Soviet Union.
The Belarusians and Russians are culturally close to the Ukrainians, and would take a functioning law-based democracy in Ukraine seriously.
In the medium term, EU support for Ukrainian democracy, civil society and rule of law would also have a geopolitical dimension: Ukraine could even one day become the EU’s Trojan horse with regard to Russia.
Russians often view western advice on the need for democratization as irrelevant, if not subversive. In contrast, an EU-promoted re-democratization of Ukraine would be harder for isolationist Russians to reject.
If Ukraine demonstrates that a largely Orthodox eastern Slavic nation can create and sustain a democratic political system, this could trigger new Russian democratization, and Ukraine could even provide the means for the EU to bring Russia back into the European family.
Ukrainian-EU rapprochement has become even more relevant in view of recent worrying domestic developments. Since Viktor Yanukovych’s election as president, Ukraine’s social and cultural polarization, already high, has risen further.
An indication of the growing fragmentation of the Ukrainian national community is the rise of Oleh Tiahnybok’s nationalist, so-called “Svoboda” (Freedom) party.
Tiahnybok’s party calls itself an “All-Ukrainian Association” and proclaims its allegiance to Velyka Ukraina (Greater Ukraine). However, Svoboda is de facto a regional, and even potentially separatist, party because of its idiosyncratic historical discourse.
It has a strong base in the three Galician regions of L’viv, Ivano-Frankivsk and Ternopil, but has far less support elsewhere. Svoboda promotes a kind of nationalism that is disliked in much of the rest of Ukraine.
Instead of contributing to the formation of a modern Ukrainian polity, Svoboda alienates many Ukrainians. (There are other deepening divides within Ukraine, too, with regard to social, cultural, religious, educational and other issues.)
European integration is something that still unites Ukraine’s political, intellectual, economic and social elites, and a large part of the population.
Rejoining Europe might be the most important and least controversial way forward, and would win wide acceptance among the elites of western, central and eastern Ukraine (though less in the south).
Ukraine’s further, gradual integration into Europe is, for all of these reasons, of great importance.
Medvedev Insists Ukraine Pay Price Agreed For Russian Natural Gas
MOSCOW, Russia -- President Dmitry Medvedev on Monday rejected calls from Ukraine for a cut in the price of natural gas imported from Russia, insisting that 'signed agreements need to be respected.'
During a meeting with Gazprom chairman Aleksei Miller, Medvedev said: 'The price as it is is absolutely fair.' He stressed that gas revenues were crucial for Russia.
Ukraine has argued that falling international gas prices and soaring profits for the state-controlled gas producer should lead to a revision in the price paid by Ukraine, which is heavily dependent on Russian gas.
Miller said Gazprom could expect record income this year on the strength of a 27-per-cent rise in gas exports for the first five months of 2011, as compared with 2010.
Rising European consumption and instability in some Middle Eastern gas-producing nations were the main drivers of rising demand for Gazprom product, Miller said in comments reported by Interfax.
Gazprom's top strategic goal was increasing delivery capacity to major consumers, he said, with a Baltic Sea pipeline to Germany and a Sea of Okhotsk pipeline aimed at the Japanese market the company's highest-priority projects.
Medvedev said Gazprom's continued strong revenues were critical for the Russian government and advised Miller to discuss price cuts with Kiev only if this were beneficial for Russia.
'Any changes need to be part of a wider agreement,' he said.
Since December, Ukraine has repeatedly called for a reduction in the price paid for gas, pointing to alleged economic damage caused to Ukrainian manufacturers producing mainly for the Russian economy.
In April 2010, Ukraine negotiated a favourable rate of $234 dollars per thousand cubic metres in exchange for a 25-year lease extension for the Russian navy to use to port facilities in Ukraine's Crimean peninsula.
That price in the face of a weakening regional economy is now too high, Kiev officials have said.
Russian officials have said the price is reasonable, but that they would be willing to consider a reduction were Ukraine to agree to turn over ownership of its natural gas transportation network to Gazprom.
Gazprom is Russia's largest company. Disputes between Gazprom and Ukraine over gas pricing sparked a halt to supplies of Russian natural gas to Europe during January 2010.
During a meeting with Gazprom chairman Aleksei Miller, Medvedev said: 'The price as it is is absolutely fair.' He stressed that gas revenues were crucial for Russia.
Ukraine has argued that falling international gas prices and soaring profits for the state-controlled gas producer should lead to a revision in the price paid by Ukraine, which is heavily dependent on Russian gas.
Miller said Gazprom could expect record income this year on the strength of a 27-per-cent rise in gas exports for the first five months of 2011, as compared with 2010.
Rising European consumption and instability in some Middle Eastern gas-producing nations were the main drivers of rising demand for Gazprom product, Miller said in comments reported by Interfax.
Gazprom's top strategic goal was increasing delivery capacity to major consumers, he said, with a Baltic Sea pipeline to Germany and a Sea of Okhotsk pipeline aimed at the Japanese market the company's highest-priority projects.
Medvedev said Gazprom's continued strong revenues were critical for the Russian government and advised Miller to discuss price cuts with Kiev only if this were beneficial for Russia.
'Any changes need to be part of a wider agreement,' he said.
Since December, Ukraine has repeatedly called for a reduction in the price paid for gas, pointing to alleged economic damage caused to Ukrainian manufacturers producing mainly for the Russian economy.
In April 2010, Ukraine negotiated a favourable rate of $234 dollars per thousand cubic metres in exchange for a 25-year lease extension for the Russian navy to use to port facilities in Ukraine's Crimean peninsula.
That price in the face of a weakening regional economy is now too high, Kiev officials have said.
Russian officials have said the price is reasonable, but that they would be willing to consider a reduction were Ukraine to agree to turn over ownership of its natural gas transportation network to Gazprom.
Gazprom is Russia's largest company. Disputes between Gazprom and Ukraine over gas pricing sparked a halt to supplies of Russian natural gas to Europe during January 2010.
Tymoshenko Demands Prosecutor General Cancel Criminal Proceedings Against Her
KIEV, Ukraine -- Ukraine's former Prime Minister and leader of the Batkivschyna Party Yulia Tymoshenko has once again asked Prosecutor General Viktor Pshonka to end the criminal proceedings against her.
"For the third time I am addressing you with a demand that you cancel the decision on opening politically motivated criminal cases against me, along with a number of illegal decisions by the investigators and prosecutors in these three cases," Tymoshenko said in an open letter to the prosecutor general, reads a report posted on her Web site on Monday.
She explained that the two previous complaints, which were addressed personally to Pshonka, had not been considered in due time, so she had to make her third appeal public.
"I am well aware from your own words, that [President Viktor] Yanukovych's instructions have a greater legal force for you than the requirements of the constitution and Ukrainian law. The fact of your personal relationship with Yanukovych is not a secret, but Yanukovychs come and go, and the law and responsibility for breaking it remain," Tymoshenko said.
In her letter, Tymoshenko noted that that Monday was the deadline for considering her complaint registered on May 26 and making a response to it.
"I understand that you realize the political nature of the criminal proceedings opened against me, and therefore do not want to put your signature to anything. But silence will not prevent you from taking responsibility for abuses in these cases and the unlawfulness of their opening. So once again I demand that you respond immediately to my addresses," Tymoshenko said.
"For the third time I am addressing you with a demand that you cancel the decision on opening politically motivated criminal cases against me, along with a number of illegal decisions by the investigators and prosecutors in these three cases," Tymoshenko said in an open letter to the prosecutor general, reads a report posted on her Web site on Monday.
She explained that the two previous complaints, which were addressed personally to Pshonka, had not been considered in due time, so she had to make her third appeal public.
"I am well aware from your own words, that [President Viktor] Yanukovych's instructions have a greater legal force for you than the requirements of the constitution and Ukrainian law. The fact of your personal relationship with Yanukovych is not a secret, but Yanukovychs come and go, and the law and responsibility for breaking it remain," Tymoshenko said.
In her letter, Tymoshenko noted that that Monday was the deadline for considering her complaint registered on May 26 and making a response to it.
"I understand that you realize the political nature of the criminal proceedings opened against me, and therefore do not want to put your signature to anything. But silence will not prevent you from taking responsibility for abuses in these cases and the unlawfulness of their opening. So once again I demand that you respond immediately to my addresses," Tymoshenko said.
Saturday 21 May 2011
Medvedev: Ukrainian Integration With Europe Could Hamper Ties With Customs Union
SKOLKOVO, Russia -- Russian President Dmitry Medvedev said on Wednesday that Ukraine risks blocking its integration into a customs union with Russia, Belarus and Kazakhstan if it chooses to form closer ties with the European Union.
Speaking during his first major news conference at the Skolkovo research hub near Moscow, Medvedev said that European integration was a "normal path" for Ukraine.
"But if Ukraine chooses that path, it will be difficult for it to [integrate] with the common economic space [between Russia, Belarus and Kazakhstan] and the Customs Union," Medvedev said.
"One cannot sit on two chairs at the same time," he added.
Ukrainian President Viktor Yanukovych has pledged to maintain good relations with both Russia and the West.
He has been trying to secure Ukraine an associate membership in the EU and sign a free trade zone agreement with the Customs Union.
Yanukovych has said Ukraine would craft its relations with the Customs Union in a 3+1 format, which will contribute to European and Eurasian economic integration.
Russian energy giant Gazprom has estimated that Ukraine could save $8 billion a year on gas tariffs in it joins the Customs Union, but the Ukrainian constitution prohibits the country from participating in any international alliances.
Medvedev also said during the news conference that Moscow was ready to consider Ukraine's proposals related to prices for gas supplies from Russia.
Yanukovich has long urged Russia to review the "unfair" pricing formula stipulated in the 2009 contract, but talks have yielded little success.
In line with the formula, Russia sells gas to Ukraine at international prices. As a close ally of Russia, Ukraine had previously received a discount on Russian gas.
In April 2010, Ukrainian state energy company Naftogaz and Gazprom signed an additional agreement with a discount of $100 per 1,000 cubic meters of Russian gas in exchange for Ukraine's agreement to extend Russia's lease on a naval base in Crimea until at least 2042.
Speaking during his first major news conference at the Skolkovo research hub near Moscow, Medvedev said that European integration was a "normal path" for Ukraine.
"But if Ukraine chooses that path, it will be difficult for it to [integrate] with the common economic space [between Russia, Belarus and Kazakhstan] and the Customs Union," Medvedev said.
"One cannot sit on two chairs at the same time," he added.
Ukrainian President Viktor Yanukovych has pledged to maintain good relations with both Russia and the West.
He has been trying to secure Ukraine an associate membership in the EU and sign a free trade zone agreement with the Customs Union.
Yanukovych has said Ukraine would craft its relations with the Customs Union in a 3+1 format, which will contribute to European and Eurasian economic integration.
Russian energy giant Gazprom has estimated that Ukraine could save $8 billion a year on gas tariffs in it joins the Customs Union, but the Ukrainian constitution prohibits the country from participating in any international alliances.
Medvedev also said during the news conference that Moscow was ready to consider Ukraine's proposals related to prices for gas supplies from Russia.
Yanukovich has long urged Russia to review the "unfair" pricing formula stipulated in the 2009 contract, but talks have yielded little success.
In line with the formula, Russia sells gas to Ukraine at international prices. As a close ally of Russia, Ukraine had previously received a discount on Russian gas.
In April 2010, Ukrainian state energy company Naftogaz and Gazprom signed an additional agreement with a discount of $100 per 1,000 cubic meters of Russian gas in exchange for Ukraine's agreement to extend Russia's lease on a naval base in Crimea until at least 2042.
Ukraine Seeks Talks With Romania, U.S. On Missile Shield
BUCHAREST, Romania -- Ukraine is seeking consultations with Bucharest and Washington on the proposed deployment of U.S. missile interceptors in Romania, Foreign Minister Kostyantyn Gryshchenko said May 18.
In the context of the steps taken to consolidate security, we think that the aim should be to reinforce security of Europe as a whole and to take into account all political aspects of this issue," Gryshchenko told a press conference in Bucharest.
"We are interested in having consultations with both our Romanian and our American partners," he added.
Ukraine shares a 300-mile border with Romania.
Bucharest and Washington two weeks ago concluded talks on the deployment of 24 missile interceptors in a former airbase in southern Romania, Deveselu.
They insisted they would be part of a purely defensive system.
But the agreement angered Moscow, which said it would seek legal guarantees that the United States does not intend to deploy a missile defense system aimed at its strategic nuclear forces.
On May 18, President Dmitry Medvedev warned the West it would face a new Cold War if it failed to address Russia's concerns over this issue.
Medvedev told reporters that the U.S. decision to push ahead with construction of the defense system despite Russia's objections will force Moscow "to take retaliatory measures - something that we would very much rather not do."
In the context of the steps taken to consolidate security, we think that the aim should be to reinforce security of Europe as a whole and to take into account all political aspects of this issue," Gryshchenko told a press conference in Bucharest.
"We are interested in having consultations with both our Romanian and our American partners," he added.
Ukraine shares a 300-mile border with Romania.
Bucharest and Washington two weeks ago concluded talks on the deployment of 24 missile interceptors in a former airbase in southern Romania, Deveselu.
They insisted they would be part of a purely defensive system.
But the agreement angered Moscow, which said it would seek legal guarantees that the United States does not intend to deploy a missile defense system aimed at its strategic nuclear forces.
On May 18, President Dmitry Medvedev warned the West it would face a new Cold War if it failed to address Russia's concerns over this issue.
Medvedev told reporters that the U.S. decision to push ahead with construction of the defense system despite Russia's objections will force Moscow "to take retaliatory measures - something that we would very much rather not do."
Ukraine To Sign EU Agreement During Poland’s Presidency?
WARSAW, Poland -- Ukraine has indicated that it aims to sign an associate agreement with the EU during Poland’s presidency of the European Council in the second half of this year.
At a joint press conference attended by Polish and Ukrainian foreign ministers in Kiev on Monday, Poland’s head of diplomacy Radek Sikorski said that “We want to ensure that during the upcoming Polish presidency of the EU [Ukraine’s relations with the EU] takes another leap forward.”
However an EU-Ukraine summit to hammer out the deal, which was going to take place this September, has been put back to December, prompting a ‘high ranking official’ to tell the Kommersant-Ukraina newspaper last month that, “I'm not sure that we will be able to finalize taks”.
An EU official told the same newspaper that Brussels suspects Ukraine of playing ‘double-bluff’ with both the EU and Russia, which Kiev wants to conclude a customs agreement with.
Poland’s six-month presidency begins on 1 July.
Prime Minister Donald Tusk said on a recent trip to the Balkans that he hopes to conclude accession talks with Croatia this year as well.
At a joint press conference attended by Polish and Ukrainian foreign ministers in Kiev on Monday, Poland’s head of diplomacy Radek Sikorski said that “We want to ensure that during the upcoming Polish presidency of the EU [Ukraine’s relations with the EU] takes another leap forward.”
However an EU-Ukraine summit to hammer out the deal, which was going to take place this September, has been put back to December, prompting a ‘high ranking official’ to tell the Kommersant-Ukraina newspaper last month that, “I'm not sure that we will be able to finalize taks”.
An EU official told the same newspaper that Brussels suspects Ukraine of playing ‘double-bluff’ with both the EU and Russia, which Kiev wants to conclude a customs agreement with.
Poland’s six-month presidency begins on 1 July.
Prime Minister Donald Tusk said on a recent trip to the Balkans that he hopes to conclude accession talks with Croatia this year as well.
Russia, Ukraine Eye Customs Union With EU
BRUSSELS, Belgium -- Russian and Ukrainian officials said their relationship with the EU could take the form of a customs union in the next 15 to 20 years, with Russia admitting it was willing to get closer to the Union "as far as possible," excluding only membership.
A panel discussion at the European Business Summit in Brussels yesterday (18 May) took the form of a visionary brainstorming session, resulting in a rather consensual view that Russia, Ukraine and the EU would eventually forge a common economic area in the long run.
Oleg Fomichev, Russia's deputy minister for economic development, said Moscow shared the EU's values and had no problem whatsoever in deepening its relations, including at a political level.
"We want to go as far as possible without being a member of the European Union," he said. Considering Russia's size, which is three times that of the EU, Moscow could not possibly be considered as a potential future EU member, he explained.
Regarding a possible customs union, Fomichev said that a period of 10-15 years was necessary for negotiations, but also for introducing regulations and boosting the competitiveness of Russian industry.
"If you integrate without being ready, you can ruin the whole thing," he warned.
Fomichev described three stages in the development of Russia-EU relations. In the short term, a visa-free regime should be put in place, he said.
In the medium term, the Russian official said a free-trade agreement (FTA) should be introduced, and in the longer term, "maybe in 20 years," a customs union could be set up.
EU relations 'a key priority' for Ukraine
Valerii Pyatnitskiy, deputy economy minister of Ukraine, said relations with the EU were "one of the key priorities" of his country, admitting that a customs union could be set up in the next 15 years.
However, he appeared to indicate that an even closer relationship with the European Union would be possible in the longer term.
"In 10 or 15 years, it won't matter if it is a customs union or another form of integration," he said.
The official also outlined his country's European agenda, saying he hoped that Ukraine's Association Agreement with the EU would be finalised this year.
"We believe that this will be an absolutely comprehensive type of relations. We are talking about the political dimension, justice and home affairs, sectoral cooperation, the establishment of a deep and comprehensive Free Trade Area, about a visa agreement, about approximation of our legislation, and improving the capacity of our institutions and the capacity of our business to compete on the EU internal market," he explained.
Two prominent representatives of the business community who participated in the panel concurred with the idea that putting in place a customs union would take about 15 years.
Andrew Cranston, senior partner in Russia at consulting firm KPMG, said that some sectors of the economy needed time to adapt.
Energy Commissioner Günther Oettinger, who also participated in the debate, insisted that Russia's gas pipeline projects that bypass Ukraine – Nord Stream and South Stream – were "not a solution".
He said that today, 100% of Russia's gas to the EU transited through Ukraine, and "tomorrow", with the pipelines operational, this proportion would rise to 50%.
At the moment, Russia's main economic activity is to produce energy, while Ukraine serves as a transit partner and the EU acts mainly as a buyer, Oettinger pointed out.
"We need a next level, meaning competition, meaning joint ventures, meaning reverse flows, meaning innovative partnerships, EU technologies used in Russia and Ukraine for energy saving," he said.
A panel discussion at the European Business Summit in Brussels yesterday (18 May) took the form of a visionary brainstorming session, resulting in a rather consensual view that Russia, Ukraine and the EU would eventually forge a common economic area in the long run.
Oleg Fomichev, Russia's deputy minister for economic development, said Moscow shared the EU's values and had no problem whatsoever in deepening its relations, including at a political level.
"We want to go as far as possible without being a member of the European Union," he said. Considering Russia's size, which is three times that of the EU, Moscow could not possibly be considered as a potential future EU member, he explained.
Regarding a possible customs union, Fomichev said that a period of 10-15 years was necessary for negotiations, but also for introducing regulations and boosting the competitiveness of Russian industry.
"If you integrate without being ready, you can ruin the whole thing," he warned.
Fomichev described three stages in the development of Russia-EU relations. In the short term, a visa-free regime should be put in place, he said.
In the medium term, the Russian official said a free-trade agreement (FTA) should be introduced, and in the longer term, "maybe in 20 years," a customs union could be set up.
EU relations 'a key priority' for Ukraine
Valerii Pyatnitskiy, deputy economy minister of Ukraine, said relations with the EU were "one of the key priorities" of his country, admitting that a customs union could be set up in the next 15 years.
However, he appeared to indicate that an even closer relationship with the European Union would be possible in the longer term.
"In 10 or 15 years, it won't matter if it is a customs union or another form of integration," he said.
The official also outlined his country's European agenda, saying he hoped that Ukraine's Association Agreement with the EU would be finalised this year.
"We believe that this will be an absolutely comprehensive type of relations. We are talking about the political dimension, justice and home affairs, sectoral cooperation, the establishment of a deep and comprehensive Free Trade Area, about a visa agreement, about approximation of our legislation, and improving the capacity of our institutions and the capacity of our business to compete on the EU internal market," he explained.
Two prominent representatives of the business community who participated in the panel concurred with the idea that putting in place a customs union would take about 15 years.
Andrew Cranston, senior partner in Russia at consulting firm KPMG, said that some sectors of the economy needed time to adapt.
Energy Commissioner Günther Oettinger, who also participated in the debate, insisted that Russia's gas pipeline projects that bypass Ukraine – Nord Stream and South Stream – were "not a solution".
He said that today, 100% of Russia's gas to the EU transited through Ukraine, and "tomorrow", with the pipelines operational, this proportion would rise to 50%.
At the moment, Russia's main economic activity is to produce energy, while Ukraine serves as a transit partner and the EU acts mainly as a buyer, Oettinger pointed out.
"We need a next level, meaning competition, meaning joint ventures, meaning reverse flows, meaning innovative partnerships, EU technologies used in Russia and Ukraine for energy saving," he said.
Ukraine: Hundreds Protest Rising Prices, Demand Higher Wages
KIEV, Ukraine -- Hundreds of Ukrainian opposition activists are protesting rising prices and demanding higher wages and pensions.
About 1,500 demonstrators gathered outside Ukraine's legislature in central Kiev on Thursday, also urging President Viktor Yanukovych's government to lower household utility bills and taxes.
Electricity and gas bills for Ukrainian families have risen sharply in recent months as the government seeks to reform the natural gas, tax and banking sectors.
The reforms have been set as a condition for receiving International Monetary Fund aid. Ukraine is in desperate need of loans after its economy was very hard hit by the global crisis.
The activists vowed to hold more protests until their demands are met.
About 1,500 demonstrators gathered outside Ukraine's legislature in central Kiev on Thursday, also urging President Viktor Yanukovych's government to lower household utility bills and taxes.
Electricity and gas bills for Ukrainian families have risen sharply in recent months as the government seeks to reform the natural gas, tax and banking sectors.
The reforms have been set as a condition for receiving International Monetary Fund aid. Ukraine is in desperate need of loans after its economy was very hard hit by the global crisis.
The activists vowed to hold more protests until their demands are met.
Opposition Leaves Rada To Protest Against Lutsenko's Detention
KIEV, Ukraine -- MPs of the BYT-Batkivschyna and Our Ukraine – People's Self-Defense factions on Friday left the session hall of the Verkhovna Rada, Ukraine's parliament, to protest against the detention of former Ukrainian Interior Minister Yuriy Lutsenko.
Today we're leaving the session hall to protest against the persecution of opposition politicians," leader of the OU-PSD faction Mykola Martynenko said in parliament.
"It is obvious that the persecution of Yuriy Lutsenko is selective and political," the OU-PSD faction leader said.
According to him, 87 MPs of the OU-PSD faction addressed the Pechersky District Court of Kiev with a request to urgently change the form of pretrial restrictions imposed on Yuriy Lutsenko.
"About one hundred signatures were gathered to release Yuriy Lutsenko on bail. If needed, we are ready to put up bail for him, the whole sum that is [indicated in the charges]," Martynenko said.
He pointed out that the government would be fully responsible for the possible consequences of a hunger strike by Lutsenko
As reported, Lutsenko has been held in jail since December 26, 2010.
He has been charged under Part 5, Article 191 (large-scale embezzlement of state property through the abuse of office, under a preliminary collusion by a group of individuals), Part 3, Article 365 (abuse of office, which led to grave consequences), and Part 3, Article 364 (the abuse of power and office by a law enforcer, which caused damage to citizens' rights as protected by the law) of the Criminal Code of Ukraine.
On January 28, the pre-trail investigation into the criminal case against Lutsenko and three more former officials of the ministry evaluated the losses caused by them to the state at over UAH 970,000.
Kiev Court of Appeals on April 22 extended Lutsenko's arrest until May 26, and after that he announced his intention to go on hunger strike from April 22.
On April 28, the former minister, in a letter to leadership of Kiev pretrial detention center, declared his intention to go on hunger strike.
At present Lutsenko is in the Kiev city clinical emergency hospital, where he was transferred from the medical unit of the pretrial detention center.
On May 17, the Prosecutor General's Office sent the criminal case against Lutsenko to the Pechersky Court of Kiev.
The date of the preliminary hearing is set for May 23.
Today we're leaving the session hall to protest against the persecution of opposition politicians," leader of the OU-PSD faction Mykola Martynenko said in parliament.
"It is obvious that the persecution of Yuriy Lutsenko is selective and political," the OU-PSD faction leader said.
According to him, 87 MPs of the OU-PSD faction addressed the Pechersky District Court of Kiev with a request to urgently change the form of pretrial restrictions imposed on Yuriy Lutsenko.
"About one hundred signatures were gathered to release Yuriy Lutsenko on bail. If needed, we are ready to put up bail for him, the whole sum that is [indicated in the charges]," Martynenko said.
He pointed out that the government would be fully responsible for the possible consequences of a hunger strike by Lutsenko
As reported, Lutsenko has been held in jail since December 26, 2010.
He has been charged under Part 5, Article 191 (large-scale embezzlement of state property through the abuse of office, under a preliminary collusion by a group of individuals), Part 3, Article 365 (abuse of office, which led to grave consequences), and Part 3, Article 364 (the abuse of power and office by a law enforcer, which caused damage to citizens' rights as protected by the law) of the Criminal Code of Ukraine.
On January 28, the pre-trail investigation into the criminal case against Lutsenko and three more former officials of the ministry evaluated the losses caused by them to the state at over UAH 970,000.
Kiev Court of Appeals on April 22 extended Lutsenko's arrest until May 26, and after that he announced his intention to go on hunger strike from April 22.
On April 28, the former minister, in a letter to leadership of Kiev pretrial detention center, declared his intention to go on hunger strike.
At present Lutsenko is in the Kiev city clinical emergency hospital, where he was transferred from the medical unit of the pretrial detention center.
On May 17, the Prosecutor General's Office sent the criminal case against Lutsenko to the Pechersky Court of Kiev.
The date of the preliminary hearing is set for May 23.
Ukraine: Weather Lady Stirs Political Storm
KIEV, Ukraine -- A weather forecaster for Ukrainian state radio has caused something of a storm herself by veering from meteorological to political observations.
Lyudmila Savchenko was taken off the air after telling listeners last week that warm spring days and blooming flowers were Ukrainians' compensation "for the disorder, lawlessness and injustice that are taking place in our country."
She also suggested that authorities felt disdain for the Ukrainian people.
Now, the country's top opposition leader Yulia Tymoshenko is calling Savchenko a hero.
The opposition faction in parliament is urging the National Radio Company to reinstate her, and even pro-government parliament speaker Volodymyr Lytvyn says he supports the call.
President Viktor Yanukovych's office declined to comment on the matter.
But Roman Chaikovsky, deputy head of the National Radio Company, said Savchenko clearly went over the line. "When a person talks about the weather, they should talk about the weather," he said.
Savchenko admits her comments may have been inappropriate for a weather report, but said she wanted her views to be heard.
"I don't have the tiniest regret about what I did — I couldn't stay indifferent to what is going on," Savchenko told The Associated Press on Friday.
Savchenko is an employee of the national weather center, whose chief, Mykola Kulbida, said he doesn't plan to take action against her.
But, he said, other meteorologists will take over her job of doing the weather broadcasts on state radio.
The storm reflects Ukraine's chronically supercharged political tensions and a penchant for exploring how far free speech can be taken.
During the 2004 Orange Revolution that broke out over a disputed presidential election ballot-count, a sign-language interpreter on state television told viewers with her hands that she believed the results had been falsified.
Yanukovych initially had been counted the winner.
But the supreme court annulled the election and forced a rerun, which he lost. He won the next election in 2010.
Tymoshenko, a leader of the Orange Revolution who has criticized Yanukovych as trying to stifle the news media, said Savchenko deserved admiration for her courage.
"My highest complements to Lyudmila Savchenko," she said Friday." We missed the moment when simply telling the truth again became an act of heroism."
Lyudmila Savchenko was taken off the air after telling listeners last week that warm spring days and blooming flowers were Ukrainians' compensation "for the disorder, lawlessness and injustice that are taking place in our country."
She also suggested that authorities felt disdain for the Ukrainian people.
Now, the country's top opposition leader Yulia Tymoshenko is calling Savchenko a hero.
The opposition faction in parliament is urging the National Radio Company to reinstate her, and even pro-government parliament speaker Volodymyr Lytvyn says he supports the call.
President Viktor Yanukovych's office declined to comment on the matter.
But Roman Chaikovsky, deputy head of the National Radio Company, said Savchenko clearly went over the line. "When a person talks about the weather, they should talk about the weather," he said.
Savchenko admits her comments may have been inappropriate for a weather report, but said she wanted her views to be heard.
"I don't have the tiniest regret about what I did — I couldn't stay indifferent to what is going on," Savchenko told The Associated Press on Friday.
Savchenko is an employee of the national weather center, whose chief, Mykola Kulbida, said he doesn't plan to take action against her.
But, he said, other meteorologists will take over her job of doing the weather broadcasts on state radio.
The storm reflects Ukraine's chronically supercharged political tensions and a penchant for exploring how far free speech can be taken.
During the 2004 Orange Revolution that broke out over a disputed presidential election ballot-count, a sign-language interpreter on state television told viewers with her hands that she believed the results had been falsified.
Yanukovych initially had been counted the winner.
But the supreme court annulled the election and forced a rerun, which he lost. He won the next election in 2010.
Tymoshenko, a leader of the Orange Revolution who has criticized Yanukovych as trying to stifle the news media, said Savchenko deserved admiration for her courage.
"My highest complements to Lyudmila Savchenko," she said Friday." We missed the moment when simply telling the truth again became an act of heroism."
Ukraine Expels Czech Diplomats, Jeopardizing Talks With The European Union
KIEV, Ukraine -- Ukraine has expelled two Czech diplomats, explaining that they had gathered military secrets and hired local assistants who now face prison sentences.
This is an extraordinary event as Ukraine has avoided scandals involving the expulsion of Western diplomats in the past.
Moreover, this happened at a crucial moment when Ukraine and the European Union, which admitted the Czech Republic into membership in 2004, are about to complete political association and free trade talks.
The scandal may affect the outcome of the talks. The Czechs have accused Ukraine of taking revenge for Prague granting political asylum early this year to the former Ukrainian Economy Minister Bohdan Danylyshyn.
On May 13, the Ukrainian foreign ministry summoned the Czech charge d’affaires, Vitezslav Pivonka, to announce that two officials from the Czech military attaché’s office were declared persona non grata for gathering Ukrainian state secrets.
The ministry’s spokesman, Oleg Voloshyn, said this was done at the request of the Security Service of Ukraine (SBU). He added that the expelled Czechs were a colonel and a major, so they were not career diplomats.
The SBU told a briefing later that the expelled Czech nationals had hired two Ukrainian “accomplices” who gathered secret information for them for several years.
In particular, the spies wanted to learn more about Kiev-based aviation plant No. 410, Ukraine’s plans to produce An-70 and An-178 aircraft, projects in which the Yuzhmash missile manufacturer is involved, the Adros jamming systems designed to protect helicopters from infrared-guided missiles and the satellite navigation systems with which the T-84 U Oplot tanks are equipped.
The SBU stressed that it managed to film the exchange of money for secret documents between the foreign spies and their Ukrainian informants.
The Czech reaction was immediate.
The Czech Foreign Minister, Karel Schwarzenberg, suggested that Ukraine acted in revenge for Prague granting political asylum last January to the former Ukrainian Economy Minister Bohdan Danylyshyn.
Last summer, Danylyshyn, who served in the 2007 – 2010 government of Prime Minister Yulia Tymoshenko, was charged with abuse of office for awarding contracts without tenders. He fled to the Czech Republic and was put on the international wanted list by Ukraine.
Danylyshyn was granted asylum on January 13, and a court in Prague refused to extradite him to Ukraine last February, while the EU and the United States reacted to the case of Danylyshyn and several arrests of former ministers on corruption charges late last year by warning Kiev against selective justice.
Tymoshenko, who is an opposition leader now, is also facing such charges, and many local and foreign observers suspect that political motives lie behind them.
Kiev denied that the expulsion of the Czech diplomats was in response to the Danylyshyn affair, claiming that the two Czechs had started spying long before Danylyshyn was appointed as a minister.
Nonetheless, Schwarzenberg had reason to speak about links between the spy scandal and Danylyshyn’s asylum.
The granting of asylum to him by Czechs has been a huge blow to Ukraine’s international image at a time when Kiev is negotiating political association with the EU; the two sides say they plan to complete the process this year.
Kiev wants to avoid similar blows in the future by showing Western democracies that it can retaliate. Otherwise Kiev might have settled the spy affair with Prague without any public scandal.
The former state reserve chief, Mykhaylo Pozhyvanov, who also served in the Tymoshenko government, applied for asylum in Austria early this year and is awaiting Vienna’s decision.
Hardly by coincidence, the SBU mentioned that one of the local assistants of the spies had applied for political asylum in the Czech Republic and was detained while trying to leave Ukraine.
Valery Chaly, a senior expert from the Kiev-based Razumkov think tank and former deputy foreign minister, suggested that the spy scandal could sink the association talks.
He said that an association agreement with the EU would not come into force if the Czech Republic as an EU member chose not to ratify it. The head of the EU office in Ukraine, Jose Manuel Pinto Teixeira, called for caution saying that support from all EU members would be essential for Ukraine’s EU integration.
The Ukrainian foreign ministry’s EU department director, Vasyl Filipchuk, tried to put a brave face on it, however, saying that the scandal would not affect relations with the Czech Republic nor with the EU.
Still, Prague decided to expel a Ukrainian military attaché in response. The Ukrainian foreign ministry said this reaction by Prague was “inadequate” as the diplomat was not accused of anything, so this was clearly retaliation.
This is an extraordinary event as Ukraine has avoided scandals involving the expulsion of Western diplomats in the past.
Moreover, this happened at a crucial moment when Ukraine and the European Union, which admitted the Czech Republic into membership in 2004, are about to complete political association and free trade talks.
The scandal may affect the outcome of the talks. The Czechs have accused Ukraine of taking revenge for Prague granting political asylum early this year to the former Ukrainian Economy Minister Bohdan Danylyshyn.
On May 13, the Ukrainian foreign ministry summoned the Czech charge d’affaires, Vitezslav Pivonka, to announce that two officials from the Czech military attaché’s office were declared persona non grata for gathering Ukrainian state secrets.
The ministry’s spokesman, Oleg Voloshyn, said this was done at the request of the Security Service of Ukraine (SBU). He added that the expelled Czechs were a colonel and a major, so they were not career diplomats.
The SBU told a briefing later that the expelled Czech nationals had hired two Ukrainian “accomplices” who gathered secret information for them for several years.
In particular, the spies wanted to learn more about Kiev-based aviation plant No. 410, Ukraine’s plans to produce An-70 and An-178 aircraft, projects in which the Yuzhmash missile manufacturer is involved, the Adros jamming systems designed to protect helicopters from infrared-guided missiles and the satellite navigation systems with which the T-84 U Oplot tanks are equipped.
The SBU stressed that it managed to film the exchange of money for secret documents between the foreign spies and their Ukrainian informants.
The Czech reaction was immediate.
The Czech Foreign Minister, Karel Schwarzenberg, suggested that Ukraine acted in revenge for Prague granting political asylum last January to the former Ukrainian Economy Minister Bohdan Danylyshyn.
Last summer, Danylyshyn, who served in the 2007 – 2010 government of Prime Minister Yulia Tymoshenko, was charged with abuse of office for awarding contracts without tenders. He fled to the Czech Republic and was put on the international wanted list by Ukraine.
Danylyshyn was granted asylum on January 13, and a court in Prague refused to extradite him to Ukraine last February, while the EU and the United States reacted to the case of Danylyshyn and several arrests of former ministers on corruption charges late last year by warning Kiev against selective justice.
Tymoshenko, who is an opposition leader now, is also facing such charges, and many local and foreign observers suspect that political motives lie behind them.
Kiev denied that the expulsion of the Czech diplomats was in response to the Danylyshyn affair, claiming that the two Czechs had started spying long before Danylyshyn was appointed as a minister.
Nonetheless, Schwarzenberg had reason to speak about links between the spy scandal and Danylyshyn’s asylum.
The granting of asylum to him by Czechs has been a huge blow to Ukraine’s international image at a time when Kiev is negotiating political association with the EU; the two sides say they plan to complete the process this year.
Kiev wants to avoid similar blows in the future by showing Western democracies that it can retaliate. Otherwise Kiev might have settled the spy affair with Prague without any public scandal.
The former state reserve chief, Mykhaylo Pozhyvanov, who also served in the Tymoshenko government, applied for asylum in Austria early this year and is awaiting Vienna’s decision.
Hardly by coincidence, the SBU mentioned that one of the local assistants of the spies had applied for political asylum in the Czech Republic and was detained while trying to leave Ukraine.
Valery Chaly, a senior expert from the Kiev-based Razumkov think tank and former deputy foreign minister, suggested that the spy scandal could sink the association talks.
He said that an association agreement with the EU would not come into force if the Czech Republic as an EU member chose not to ratify it. The head of the EU office in Ukraine, Jose Manuel Pinto Teixeira, called for caution saying that support from all EU members would be essential for Ukraine’s EU integration.
The Ukrainian foreign ministry’s EU department director, Vasyl Filipchuk, tried to put a brave face on it, however, saying that the scandal would not affect relations with the Czech Republic nor with the EU.
Still, Prague decided to expel a Ukrainian military attaché in response. The Ukrainian foreign ministry said this reaction by Prague was “inadequate” as the diplomat was not accused of anything, so this was clearly retaliation.
Sunday 15 May 2011
Dmytro Firtash,Tycoon buys Ukraine Bank
Dmytro Firtash, a Ukrainian business tycoon with ties to President Viktor Yanukovych, has acquired the troubled Nadra Bank, expanding a business empire that was under attack when Yulia Tymoshenko was prime minister.
The $440 million acquisition of 90 percent of Nadra, which has been under National Bank of Ukraine administration since 2009, gives Firtash a foothold in the country’s financial sector to add to his considerable domestic and foreign interests in chemicals, natural gas and media.
The purchase comes after Firtash was last month summoned by a U.S. court to answer a lawsuit filed by Tymoshenko, a bitter foe of the controversial businessman and the president, ousted shortly after Yanukovych defeated her in the presidential election. She alleges that Firtash colluded with the government to defraud Ukraine of some $3 billion worth of natural gas.
Both he and the government deny any wrongdoing.
Firtash acquired the controlling stake in Nadra through his Austria-registered Centragas Holding which bought an entire additional stock issue by the bank making up 89.97 percent of its shares for 3.5 billion hryvnias ($440 million), Nadra said in a statement.
With assets of Hr 22.9 billion, Nadra is Ukraine’s 11th largest bank. It has restructured its foreign debt with significant write-offs after going into default in 2009, Reuters reported.
Ukraine’s central bank has pumped in more than $1 billion in loans and other assistance since 2008 to keep the bank afloat – and another $600 million may be needed to make it a viable institution, according to government and International Monetary Fund estimates.
Although questions of transparency remain an issue, Dragon Capital investment bank analysts wrote favorably about the acquisition: “We consider this news positively, as the first step towards recapitalization has now been completed. However, we are still waiting for the government to announce the remaining recapitalization needs and the financing sources.”
Angry depositors have long battled to get their cash returned, which required intervention from the government amid investigations into alleged financial mismanagement at the bank. The bank’s former chief executive officer, Ihor Gilenko, and other ex-bank officials remain fugitives from justice after prosecutors charged them with embezzlement.
Last year, the bank owed depositors an estimated $1 billion to depositors, including individuals and commercial entities, according to Ihor Stepanov, coordinator for the United Independent Committee of Depositor.
There have been no public statements about the bank’s plans to repay depositors.
The purchase by Firtash was given the go-ahead by the central bank, which had been looking for an investor.
Cleaning up Nadra has been one of several key conditions set by the IMF in exchange for a credit line of up to $15 billion. The IMF has called upon Ukraine to either shut down the bank, in turn selling off its assets, or to find a new investor that could recapitalize it.
Despite bringing in Firtash to save Nadra, questions linger over what went wrong at the bank and why Firtash – long considered an investor in it – would be interested in buying it.
Alexander Valchyshen, head of research at Investment Capital Ukraine, told the Financial Times that Firtash would use the bank to service his business empire’s cash flow. He added that he could use his media outlets to improve the bank’s damaged reputation and use cash from depositors to finance his other businesses.
Firtash achieved prominence as a co-owner along with Russia’s gas giant Gazprom of RosUkrEnergo, a Swiss-registered gas trader that was ousted from the multibillion-dollar gas trade between Russia and Ukraine in 2009 by Tymoshenko.
Since Yanukovych came to power, Tymoshenko has come under criminal investigation by prosecutors for alleged financial wrongdoings while she was prime minister from 2007 to 2010. One probe is looking into her role in concluding the deal with Russia in 2009, removing RosUkrEnergo and securing a new gas contract between the two countries, which the government has complained sets the price of gas too high. She denies wrongdoing.
The accusations and counter-attacks relate to the 2009 deal with Russia, which allowed Ukraine’s state gas company Naftogaz to seize 11 billion cubic meters of gas from RosUkrEnergo. An international court ruled the move illegal last year, forcing Naftogaz to return around $3 billion of gas to RosUkrEnergo.
Tymoshenko claimed that Firtash and the government colluded to ensure RosUkrEnergo won the case, at the expense of state-owned Naftogaz. Firtash, who has close ties to Yanukovych’s inner circle, has also acquired three major chemicals plants since the president took power.
The $440 million acquisition of 90 percent of Nadra, which has been under National Bank of Ukraine administration since 2009, gives Firtash a foothold in the country’s financial sector to add to his considerable domestic and foreign interests in chemicals, natural gas and media.
The purchase comes after Firtash was last month summoned by a U.S. court to answer a lawsuit filed by Tymoshenko, a bitter foe of the controversial businessman and the president, ousted shortly after Yanukovych defeated her in the presidential election. She alleges that Firtash colluded with the government to defraud Ukraine of some $3 billion worth of natural gas.
Both he and the government deny any wrongdoing.
Firtash acquired the controlling stake in Nadra through his Austria-registered Centragas Holding which bought an entire additional stock issue by the bank making up 89.97 percent of its shares for 3.5 billion hryvnias ($440 million), Nadra said in a statement.
With assets of Hr 22.9 billion, Nadra is Ukraine’s 11th largest bank. It has restructured its foreign debt with significant write-offs after going into default in 2009, Reuters reported.
Ukraine’s central bank has pumped in more than $1 billion in loans and other assistance since 2008 to keep the bank afloat – and another $600 million may be needed to make it a viable institution, according to government and International Monetary Fund estimates.
Although questions of transparency remain an issue, Dragon Capital investment bank analysts wrote favorably about the acquisition: “We consider this news positively, as the first step towards recapitalization has now been completed. However, we are still waiting for the government to announce the remaining recapitalization needs and the financing sources.”
Angry depositors have long battled to get their cash returned, which required intervention from the government amid investigations into alleged financial mismanagement at the bank. The bank’s former chief executive officer, Ihor Gilenko, and other ex-bank officials remain fugitives from justice after prosecutors charged them with embezzlement.
Last year, the bank owed depositors an estimated $1 billion to depositors, including individuals and commercial entities, according to Ihor Stepanov, coordinator for the United Independent Committee of Depositor.
There have been no public statements about the bank’s plans to repay depositors.
The purchase by Firtash was given the go-ahead by the central bank, which had been looking for an investor.
Cleaning up Nadra has been one of several key conditions set by the IMF in exchange for a credit line of up to $15 billion. The IMF has called upon Ukraine to either shut down the bank, in turn selling off its assets, or to find a new investor that could recapitalize it.
Despite bringing in Firtash to save Nadra, questions linger over what went wrong at the bank and why Firtash – long considered an investor in it – would be interested in buying it.
Alexander Valchyshen, head of research at Investment Capital Ukraine, told the Financial Times that Firtash would use the bank to service his business empire’s cash flow. He added that he could use his media outlets to improve the bank’s damaged reputation and use cash from depositors to finance his other businesses.
Firtash achieved prominence as a co-owner along with Russia’s gas giant Gazprom of RosUkrEnergo, a Swiss-registered gas trader that was ousted from the multibillion-dollar gas trade between Russia and Ukraine in 2009 by Tymoshenko.
Since Yanukovych came to power, Tymoshenko has come under criminal investigation by prosecutors for alleged financial wrongdoings while she was prime minister from 2007 to 2010. One probe is looking into her role in concluding the deal with Russia in 2009, removing RosUkrEnergo and securing a new gas contract between the two countries, which the government has complained sets the price of gas too high. She denies wrongdoing.
The accusations and counter-attacks relate to the 2009 deal with Russia, which allowed Ukraine’s state gas company Naftogaz to seize 11 billion cubic meters of gas from RosUkrEnergo. An international court ruled the move illegal last year, forcing Naftogaz to return around $3 billion of gas to RosUkrEnergo.
Tymoshenko claimed that Firtash and the government colluded to ensure RosUkrEnergo won the case, at the expense of state-owned Naftogaz. Firtash, who has close ties to Yanukovych’s inner circle, has also acquired three major chemicals plants since the president took power.
Ukraine is probing Victory Day violence
The Ukrainian ambassador in Moscow has assured a Russian deputy foreign minister that Ukraine's government is investigating an incident in Lviv on Monday in which Ukrainian nationalists used violence in an attempt to prevent World War II memorial events.
"The Russian side drew the ambassador's attention to the events of May 9 in Lviv, where actions by extremist forces humiliated veterans and people who were celebrating the Day of Victory over fascism. The assault on the representatives of the Russian Federation and the desecration of [Russian] national symbols is absolutely unacceptable," the Russian Foreign Ministry said in a report on Friday on a telephone conversation between Ambassador Volodymyr Yelchenko and Deputy Minister Grigory Karasin.
"The Ukrainian side said that Ukrainian specialized governmental bodies had been ordered to investigate the incident. The Russian side would be briefed on the results," the ministry said.
Yelchenko and Karasin also discussed "key issues of bilateral Russian-Ukrainian relations and preparations for forthcoming high-level political contacts."
"The Russian side drew the ambassador's attention to the events of May 9 in Lviv, where actions by extremist forces humiliated veterans and people who were celebrating the Day of Victory over fascism. The assault on the representatives of the Russian Federation and the desecration of [Russian] national symbols is absolutely unacceptable," the Russian Foreign Ministry said in a report on Friday on a telephone conversation between Ambassador Volodymyr Yelchenko and Deputy Minister Grigory Karasin.
"The Ukrainian side said that Ukrainian specialized governmental bodies had been ordered to investigate the incident. The Russian side would be briefed on the results," the ministry said.
Yelchenko and Karasin also discussed "key issues of bilateral Russian-Ukrainian relations and preparations for forthcoming high-level political contacts."
Ukrainian owners hold assets in anticipation of price growth
Many owners preferred to go bankrupt than sell cheaply during the financial crisis.
When the global economic crisis of 2009 hit Ukraine super hard, many expected a surge in merger and acquisition activity to follow in which cash-strapped Ukrainian owners would dump their distressed assets. But it didn’t happen.
Despite being amongst the hardest hit economies worldwide, with gross domestic product dropping 15 percent in 2009, there appeared to be almost no panicky cheap selloff of assets in Ukraine.
In the aftermath, Ukrainian owners of businesses also proved to be among the toughest negotiators. They were squeezed financially and cut off from cheaper loans that they had access to in prior years.
Yet, they still stubbornly held on to their assets during crisis years when cash was considered king, and refused what they saw as low asking prices in the hopes that pre-crisis peak values would return within years.
Viacheslav Yakymchuk, partner at the Kyiv office of Baker & McKenzie - CIS, an international law firm, thinks that the strategy may work, especially since more affordable financing instruments – international credit and capital markets – are beginning to reopen for Ukraine.
Yakymchuk and his law firm are amongst the strongest authorities on M&A deals involving Ukrainian assets. Baker & McKenzie has worked on Ukraine-related M&A deals worth more than $8.5 billion. That’s nearly a quarter of the combined value of total Ukraine-related M&A deals.
In this Kyiv Post interview, Yakymchuk reveals more about the M&A market in Ukraine. Prices are recovering, although the time of super high asset valuations seen before the crisis hasn't come yet, he said.
When the global economic crisis of 2009 hit Ukraine super hard, many expected a surge in merger and acquisition activity to follow in which cash-strapped Ukrainian owners would dump their distressed assets. But it didn’t happen.
Despite being amongst the hardest hit economies worldwide, with gross domestic product dropping 15 percent in 2009, there appeared to be almost no panicky cheap selloff of assets in Ukraine.
In the aftermath, Ukrainian owners of businesses also proved to be among the toughest negotiators. They were squeezed financially and cut off from cheaper loans that they had access to in prior years.
Yet, they still stubbornly held on to their assets during crisis years when cash was considered king, and refused what they saw as low asking prices in the hopes that pre-crisis peak values would return within years.
Viacheslav Yakymchuk, partner at the Kyiv office of Baker & McKenzie - CIS, an international law firm, thinks that the strategy may work, especially since more affordable financing instruments – international credit and capital markets – are beginning to reopen for Ukraine.
Yakymchuk and his law firm are amongst the strongest authorities on M&A deals involving Ukrainian assets. Baker & McKenzie has worked on Ukraine-related M&A deals worth more than $8.5 billion. That’s nearly a quarter of the combined value of total Ukraine-related M&A deals.
In this Kyiv Post interview, Yakymchuk reveals more about the M&A market in Ukraine. Prices are recovering, although the time of super high asset valuations seen before the crisis hasn't come yet, he said.
Kyiv ranks 36th in world in terms of rent rates for premium class offices
Kyiv ranks 36th in the world and 15th in the EMEA region in terms of rent rates for premium class offices, according to a press release of Colliers International consulting company (Kyiv).
The review of the main indicators of the office real estate in the world and the EMEA region compiled by Colliers International as of late 2010-early 2011 includes volume of construction, level of rent rates, vacancy, capitalization rates in the largest cities around the world.
The rent rate for A class premium offices (the maximum one) in Kyiv was $40.4 per square meter monthly. Along with this, in the first half of 2010, Kyiv ranked 35th in the indicator in the world and 15th in the EMEA region.
Hong Kong ranks first in the world rating ($172.2 per square meter monthly), London ranks second (West End district, $119.3 per square meter monthly). Tokyo ranks third ($94.2 per square meter monthly), Paris is the fourth ($91.6 per square meter monthly), and City of London is the fifth ($89.5 per square meter monthly).
The review of the main indicators of the office real estate in the world and the EMEA region compiled by Colliers International as of late 2010-early 2011 includes volume of construction, level of rent rates, vacancy, capitalization rates in the largest cities around the world.
The rent rate for A class premium offices (the maximum one) in Kyiv was $40.4 per square meter monthly. Along with this, in the first half of 2010, Kyiv ranked 35th in the indicator in the world and 15th in the EMEA region.
Hong Kong ranks first in the world rating ($172.2 per square meter monthly), London ranks second (West End district, $119.3 per square meter monthly). Tokyo ranks third ($94.2 per square meter monthly), Paris is the fourth ($91.6 per square meter monthly), and City of London is the fifth ($89.5 per square meter monthly).
Police detain several participants of Day of Indignation rally in Kyiv
The police have detained several participants of the Day of Indignation rally, who were trying to set up tents on the lawn in front of the building of Ukraine's parliament in Kyiv.
A scuffle between the protesters and officers of the Berkut special units continues, a correspondent of Interfax-Ukraine reported. The law-enforcers have encircled the territory where the protesters were trying to set up tents.
The policemen have lined up along the fence of the building of the Verkhovna Rada, the fence of the Mariinsky Palace, and the Mariinsky Park and directly in front of the parliament building. According to rough estimates, there are about 1,000 police officers and only a few hundred protesters.
After the Day of Indignation rally against the actions of the current government ended, its participants tried to set up tents on the lawn near the building of the Verkhovna Rada. Policemen surrounded the protesters in order to prevent it, citing a court decision.
A scuffle between the protesters and officers of the Berkut special units continues, a correspondent of Interfax-Ukraine reported. The law-enforcers have encircled the territory where the protesters were trying to set up tents.
The policemen have lined up along the fence of the building of the Verkhovna Rada, the fence of the Mariinsky Palace, and the Mariinsky Park and directly in front of the parliament building. According to rough estimates, there are about 1,000 police officers and only a few hundred protesters.
After the Day of Indignation rally against the actions of the current government ended, its participants tried to set up tents on the lawn near the building of the Verkhovna Rada. Policemen surrounded the protesters in order to prevent it, citing a court decision.
Monday 2 May 2011
Tymoshenko to ask EU to examine gas contracts signed in 2009
Former Ukrainian Prime Minister and Batkivschyna Party leader Yulia Tymoshenko is planning to ask the European Union to examine the gas contracts signed by Ukraine and Russia in 2009.
"I will definitely appeal to the European Union to examine all gas contracts signed by me," she said in an interview with the Focus magazine published on Friday.
"I'm sure that all of the gas contracts signed in 2009 are effective," Tymoshenko said.
She noted that the removal of a gas intermediary in relations between Ukraine and Russia - gas trader RosUkrEnergo – had made it possible to reach agreement to increase the gas transit rate by 70% from January 1, 2010.
"I ensured that [Ukrainian President Viktor] Yanukovych and his government get $3 billion a year from Russia as payment for [gas] transit! At the same time, Europe paid $500 per 1,000 cubic meters of gas, and we managed to sign a package agreement with Moscow and get gas at a price of $228. The gas price was lower only in Belarus," she said.
In April 2011, the Ukrainian Prosecutor General's Office opened a third criminal case against Tymoshenko concerning her exceeding her authority and abusing office in signing gas contracts in 2009. The case was opened under Part 3 of Article 365 of the Criminal Code of Ukraine. It has been claimed that the actions of the former premier caused losses to the state worth UAH 1.5 billion.
"I will definitely appeal to the European Union to examine all gas contracts signed by me," she said in an interview with the Focus magazine published on Friday.
"I'm sure that all of the gas contracts signed in 2009 are effective," Tymoshenko said.
She noted that the removal of a gas intermediary in relations between Ukraine and Russia - gas trader RosUkrEnergo – had made it possible to reach agreement to increase the gas transit rate by 70% from January 1, 2010.
"I ensured that [Ukrainian President Viktor] Yanukovych and his government get $3 billion a year from Russia as payment for [gas] transit! At the same time, Europe paid $500 per 1,000 cubic meters of gas, and we managed to sign a package agreement with Moscow and get gas at a price of $228. The gas price was lower only in Belarus," she said.
In April 2011, the Ukrainian Prosecutor General's Office opened a third criminal case against Tymoshenko concerning her exceeding her authority and abusing office in signing gas contracts in 2009. The case was opened under Part 3 of Article 365 of the Criminal Code of Ukraine. It has been claimed that the actions of the former premier caused losses to the state worth UAH 1.5 billion.
Azarov: Russia listening to Kyiv's arguments on revision of gas price formula
Ukraine hopes that its talks with Russia on the revision of the gas price formula will be successful, Prime Minister Mykola Azarov has said.
"We have begun to hold proper talks with the Russian Federation. We offered very strong arguments. Russia listened to them, and so the talks are going very well," he told journalists in Kyiv on Friday.
Azarov said the sides were defending their interests in the talks.
"Naturally, each side in the negotiation process would like to get its own way. Russia would not like to change anything - that is their position. But we would like to thoroughly review it [the gas contract] and outline proper conditions there," Azarov said.
He said Ukraine was not asking for any preferences and discounts.
"We're asking for a general European approach to price formation," Azarov said.
He said that he considered the start of talks to be successful and described them as "an unambiguous
"We have begun to hold proper talks with the Russian Federation. We offered very strong arguments. Russia listened to them, and so the talks are going very well," he told journalists in Kyiv on Friday.
Azarov said the sides were defending their interests in the talks.
"Naturally, each side in the negotiation process would like to get its own way. Russia would not like to change anything - that is their position. But we would like to thoroughly review it [the gas contract] and outline proper conditions there," Azarov said.
He said Ukraine was not asking for any preferences and discounts.
"We're asking for a general European approach to price formation," Azarov said.
He said that he considered the start of talks to be successful and described them as "an unambiguous
American-style suburban developments spring up
Suburban bliss can come as cheaply as an $180,000 loan with 15 percent interest rate.
Walking on a Saturday morning through Green Hills, a suburban residential neighborhood under development a few kilometers outside of Kyiv, you meet lots of young families with small kids.
Not all of them live here. Some just invested in the construction of houses, worth at least $180,000, and are now coming every weekend to check the building progress.
In contrast to some apartment buildings in Kyiv where neighbors rarely talk to each other, homeowners in this development are already starting to behave like American community dwellers.
Walking on a Saturday morning through Green Hills, a suburban residential neighborhood under development a few kilometers outside of Kyiv, you meet lots of young families with small kids.
Not all of them live here. Some just invested in the construction of houses, worth at least $180,000, and are now coming every weekend to check the building progress.
In contrast to some apartment buildings in Kyiv where neighbors rarely talk to each other, homeowners in this development are already starting to behave like American community dwellers.
Boyko says Ukraine, Russia to reach compromise on revision of gas contracts by September
Ukraine's state oil and gas company Naftogaz and Russia's Gazprom will reach by September 2011 an agreement on the revision of the natural gas price formula that is unprofitable for Ukraine, Energy and Coal Industry Minister Yuriy Boyko has said.
"I'm confident that we will reach a compromise this summer... We will reach a compromise before the price of gas for our country significantly grows, and this will happen in the fourth quarter," he said on the Big Politics talk show on the Inter TV channel late on Friday.
Boiko said that the current Ukrainian government was constantly working on the revision of the gas agreements signed in January 2009.
"If one of the sides is dissatisfied with contractual relations, then, of course, the contract will not work for a long time... We believe that the contract should be reviewed. We are constantly working on this," he said.
Boiko also noted that Ukraine and Russia would reach an agreement without resorting to litigation, although this is envisaged in the current gas agreements.
"Of course, such a [possibility of resolving disputes in the Stockholm arbitration] is envisaged there, but I'm sure that taking into account the level of our cooperation and understanding our mutual responsibility, we will reach agreement without any litigation," he said, adding that Ukraine is not only the largest country transiting Russian gas, but also the largest gas consumer.
"We have such a high level of mutual cooperation and a wide field of economic relations that we are just obliged to reach agreement," Boyko said.
As reported, Boiko met with Gazprom CEO Alexei Miller in Moscow on April 28 to discuss strategic cooperation and bilateral relations in the gas sphere.
According to Russian-Ukrainian gas contracts signed in January 2009 for the period to 2020, the price of Russian gas is based on a formula that takes changes in the price of fuel oil and gasoil into account.
Ukraine has repeatedly talked of the need to review the formula for importing Russian gas in contracts between Gazprom and Naftogaz.
"I'm confident that we will reach a compromise this summer... We will reach a compromise before the price of gas for our country significantly grows, and this will happen in the fourth quarter," he said on the Big Politics talk show on the Inter TV channel late on Friday.
Boiko said that the current Ukrainian government was constantly working on the revision of the gas agreements signed in January 2009.
"If one of the sides is dissatisfied with contractual relations, then, of course, the contract will not work for a long time... We believe that the contract should be reviewed. We are constantly working on this," he said.
Boiko also noted that Ukraine and Russia would reach an agreement without resorting to litigation, although this is envisaged in the current gas agreements.
"Of course, such a [possibility of resolving disputes in the Stockholm arbitration] is envisaged there, but I'm sure that taking into account the level of our cooperation and understanding our mutual responsibility, we will reach agreement without any litigation," he said, adding that Ukraine is not only the largest country transiting Russian gas, but also the largest gas consumer.
"We have such a high level of mutual cooperation and a wide field of economic relations that we are just obliged to reach agreement," Boyko said.
As reported, Boiko met with Gazprom CEO Alexei Miller in Moscow on April 28 to discuss strategic cooperation and bilateral relations in the gas sphere.
According to Russian-Ukrainian gas contracts signed in January 2009 for the period to 2020, the price of Russian gas is based on a formula that takes changes in the price of fuel oil and gasoil into account.
Ukraine has repeatedly talked of the need to review the formula for importing Russian gas in contracts between Gazprom and Naftogaz.
Naftogaz to start selling petroleum products at auctions in May
Ukraine's state oil and gas company Naftogaz will start selling at auctions in May 2011 the petroleum products supplied from the Lysychansk oil refinery (private JSC LINIK, Luhansk region), Ukrainian Energy and Coal Industry Minister Yuriy Boiko has said.
"As for the question of trade interventions, Naftogaz Ukrainy processed about 100,000 tonnes of oil, and on May 6 it will start selling these petroleum products at auctions," he said on the Big Politics talk show on the Inter TV channel late on Friday.
Boiko noted that the state would continue to monitor the work of the country's petroleum products market to avoid speculation and sharp hikes in the price of fuel.
"The state will always intervene in the work of this market and make the same trade interventions. I can say that we managed to curb the uncontrolled rise in prices and remove the speculative component... Every week we monitor both the price and the amount of fuel in the country in order to avoid its deficit," the minister said.
As reported, Naftogaz plans to refine up to one million tonnes of Russian Urals crude oil at the Lysychansk oil refinery in 2011.
Naftogaz held talks on the possibility of signing an agreement to buy crude oil refining services, and the private JSC is ready to sign an agreement worth UAH 288 million.
TNK-BP Commerce President and CEO Didier Casimiro said earlier that Naftogaz would refine 100,000 tonnes of crude oil every month at the Lysychansk oil refinery.
"As for the question of trade interventions, Naftogaz Ukrainy processed about 100,000 tonnes of oil, and on May 6 it will start selling these petroleum products at auctions," he said on the Big Politics talk show on the Inter TV channel late on Friday.
Boiko noted that the state would continue to monitor the work of the country's petroleum products market to avoid speculation and sharp hikes in the price of fuel.
"The state will always intervene in the work of this market and make the same trade interventions. I can say that we managed to curb the uncontrolled rise in prices and remove the speculative component... Every week we monitor both the price and the amount of fuel in the country in order to avoid its deficit," the minister said.
As reported, Naftogaz plans to refine up to one million tonnes of Russian Urals crude oil at the Lysychansk oil refinery in 2011.
Naftogaz held talks on the possibility of signing an agreement to buy crude oil refining services, and the private JSC is ready to sign an agreement worth UAH 288 million.
TNK-BP Commerce President and CEO Didier Casimiro said earlier that Naftogaz would refine 100,000 tonnes of crude oil every month at the Lysychansk oil refinery.
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