Ukrainian Government amends protocol on Russian gas transits
Natalya Grib and Oleg Gavrish, Kiev
The gas dispute between Russia and Ukraine is continuing. Yesterday, Ukraine signed the protocol on control over Russian gas transits to Europe. The international observers have already left for the gas measuring stations. It turned out, however, that Ukraine had added clauses to the protocol, causing Russia's indignation. Moscow decided to declare the document void.
Late on January 10, Ukrainian Prime Minister Yulia Tymoshenko met with her Czech counterpart Mirek Topolanek, who came to Kiev from Moscow. When the meeting ended at 3 am, Mr Topolanek announced that "Russian gas deliveries to Europe may be resumed within 36 hours." Yulia Tymoshenko explained that she had signed a tripartite protocol to create a control mechanism of supply and transit of Russian gas through Ukraine. The day before, a similar agreement was signed in Moscow by Russian Deputy Prime Minister Igor Sechin and Energy Minister Sergei Shmatko.
The protocol envisions the creation of an international commission including representatives of Gazprom, Naftogaz, Russian and Ukrainian Energy Ministries, the European Commission and European consumers. The parties can appoint 25 experts each.
"The observers should be granted full and unrestricted access to the underground storage facilities and gas measuring stations in Ukraine, Russia, the EU and the countries which Ukraine borders on." Naftogaz confirmed that expert groups had been formed and were leaving for their destinations at 8 pm Moscow time. At 10 pm, they were expected to be on the spot and ready to monitor the gas transit.
Russia, however, did not acknowledge that the dispute was over. Yesterday, Gazprom was unable to say when the gas transits to Europe will be resumed. In the evening, President Dmitry Medvedev approved a continuation of the dispute. At 9:20 pm, RIA Novosti reported that the Russian President declared the protocol signed the day before to be invalid. "We will resume the gas transits only when we have a document signed by all the interested parties and textually compliant with the one prepared, agreed and signed by Russia," the President said.
Although, judging from Ukraine's statements, the conditions had been met, Igor Sechin reported to the President that the Russian Government had received no signed protocol from Ukraine by 4 pm Moscow time. Towards the evening, Russian officials were finally able to read the document, which raised a storm of indignation.
Ukraine had included a number of clauses in the document, including the following: "Ukraine has always been a reliable gas transiter and did not suspend supplies to Europe." According to the document, Ukraine did not siphon off gas in the period following January 1; it owes no money to Russia and "initiated the invitation of international experts to monitor the Ukrainian gas pipeline system."
"The clauses and appendices written into the document by Ukraine can only be regarded as a violation of common sense and previous agreements," said Dmitry Medvedev during a meeting with Foreign Minister Sergei Lavrov. "These actions are aimed at wrecking the existing agreements on gas transit control and are openly provocative and destructive," said the Russian President.
In a telephone conversation with European Commission President Jose Manuel Barroso, Prime Minister Vladimir Putin confirmed that "any clauses to the protocol signed by Russian and EU representatives in Moscow that had not been previously agreed with Russia are unacceptable." The Prime Minister said Ukraine's amendments "totally change the essence of the protocol and are largely unrelated to securing Russian gas transits via Ukraine to the European consumers, which is a purely commercial issue between Gazprom and Naftogaz."
Sources close to the negotiations say the whole matter depends on the price of technical gas Ukraine needs to pump the fuel through the pipelines. A Gazprom employee told Kommersant that their Ukrainian partners made amendments to the documents, demanding "6.4 billion cubic metres of technical gas a year, which makes 21 million cubic metres daily." Since the beginning of the year, Ukraine has been plainly siphoning off gas from the transit pipes.
Yesterday morning, Naftogaz offered Gazprom to pay $201 for 1,000 cubic metres, but the Russian monopoly insists on $450. The same price stands for gas supplies to Ukraine, which were suspended from January 1. "If they don't like the price, they can buy gas from Poland," Gazprom top managers say. Naftogaz says the transit rate must be raised from $1.7 to $9.8 for transporting 1,000 cubic metres per 100 kilometres.
Although Vladimir Putin said commercial issues were out of place at the current point in the gas dispute, he suggested that the EU takes part in the process. In his interview to Germany's ARD television channel, the Prime Minister suggested that the EU issue a loan to Ukraine to pay for Gazprom's services. According to Vladimir Putin, the Russian gas monopoly lost $800 million in the dispute, and was forced to shut over 100 gas wells, which, however, did not lead to any hazardous consequences. The Prime Minister suggested discussing the latest round of the gas dispute at today's meeting of EU Energy Ministers.
NATO is ready to intervene, The Times reported yesterday citing the US representative to NATO. "If the situation continues to deteriorate, NATO should think of possible ways to help its allies affected by the crisis," said US Ambassador to NATO Kurt Volker. "This also has political overtones - we have seen Russia using such events to gain political leverage," he added. The diplomat didn't elaborate, however, on the possible NATO reaction.