Rossiiskaya Gazeta: "Ukraine’s Hostages – Priority"

Rossiiskaya Gazeta: "Ukraine’s Hostages – Priority"

On Wednesday, Prime Ministers of the countries hit hardest by the gas conflict - Bulgaria, Moldova, and Slovakia - arrived in Moscow. Prime Minister Vladimir Putin was the first to harshly explain Moscow's position. Closer to evening, President Dmitry Medvedev proposed that a summit of countries using or transiting Russian gas be held.
"The occasion on which we are meeting is not a happy one; it is connected with gas transit," Mr Putin said in his opening remarks. "We feel sorry for what is happening and, for our part, are doing what we can to restart transit to Europe."
Speaking of the efforts made, the Russian Prime Minister had in mind an EU protocol signed a few days ago to set up a many-sided international commission for gas flow control. "We are disappointed at the way the protocol is being fulfilled, or rather at the way it is not being fulfilled, by our Ukrainian partners," Mr Putin said. "Gazprom is delivering gas through the Sudzha station unilaterally, without any previous agreement, its ‘Ukrainian partners' say in a letter to Gazprom," the Prime Minister said. In other words, Mr Putin indicated that Ukraine agreed that gas supplies were renewed but refused to accept the protocol. "We are hearing that our Ukrainian friends have gas transit problems, but these are not our problems. These are the problems that the transit country must solve for itself," Mr Putin said. The Russian Prime Minister practically said the EU had more influence over Kiev than Russia.
Then came the visiting Prime Ministers' turns to speak. The tone was set by Moldovan Prime Minister Zinaida Greceanii, who said it was a pity that the lack of an agreement between Russia and Ukraine was making other gas consumers suffer. Since January 6, she said, her republic had been receiving only one-third of its gas needs, forcing many plants to switch to fuel oil, while schools extended holidays.
"People cannot understand why they should be freezing when Moldova has a contract," Greceanii said.
Bulgarian Prime Minister Sergei Stanishev went global in describing the situation. He noted that Europe had become the hostage of the gas conflict between the two countries, although consumers observed all contract conditions. "Credibility is the biggest risk for Ukraine and Russia," Stanishev said. He said his country could meet its immediate needs itself.
Of all statesmen present, Prime Minister Robert Fico of Slovakia was most determined. He explained that he would rather talk with Mr Putin one on one.
"I am not complaining - Slovakia is simply in crisis. We pay world prices - 450 dollars for one thousand cubic metres," he said, and added that Ukraine was losing partners "because of the way it is behaving." Before coming to Moscow, the Slovak Prime Minister visited Kiev, where he was shown documents purporting to prove Ukraine's case. Their mention sent the Russian Prime Minister into an angry fit.
"What sort of documents are these? What documents can our Ukrainian friends show us but those that show that no gas is flowing?" Mr Putin thundered. In his opinion, the dispute between Russia and Ukraine is over prices, not deliveries to Europe. Transit is covered by a separate treaty concluded through 2013, he said.
"No matter who produces these documents I am ready to throw them into a stove," Mr Putin said, flinging the folder on the desk. "We opened our taps and are ready to supply, while Ukraine shut its valves tight. The problem is not with us not shipping, the problem is with them not letting our gas through," the Russian Prime Minister said.
He said Gazprom had asked for permission to pump 76 million cubic metres to the Balkans and 22 million cubic metres to Slovakia, but was refused.
Nothing is also known for certain about Ukraine's gas transportation system, because neither Russian specialists nor European Union observers are allowed to inspect it, Deputy Prime Minister Igor Sechin said, winding up the talks. It is therefore hard to estimate the exact quantity of technological gas needed, he said. All in all, Ukraine tapped a total of 140 million cubic metres of gas without authorisation, but the Deputy Prime Minister ruled out any sanctions against Ukraine. "If Ukraine releases gas from underground storage sites and supplies it to its partners in Europe, Russia is ready to compensate it for this volume," Mr Sechin said. He said alternative routes were currently under discussion, particularly a gas pipeline from the Yamal Peninsula across Belarus and Poland.
The talks lasted about an hour. As they ended, the visiting Prime Ministers promptly left Mr Putin's residence to go to Gazprom. Ms Greceanii paused before journalists and said with regret, "Nothing new".
After visiting Gazprom, the three Prime Ministers went to meet with President Medvedev. The President began the meeting by proposing a summit of Russian gas consumers and transiters in Moscow. It could take place that very Saturday, January 17, he said. Ukraine, the cause of the summit, was also invited, said Natalya Timakova, the presidential spokesperson. Gazprom, it will be remembered, is unable to restart the flow of gas across Ukraine because of the unlawful siphoning of gas by its authorities.
Mr Medvedev suggested that the agenda carry only two items: how to end the current conflict and how to prevent a future one. "Ukraine, as a country seeking unity and full relations with the EU, should be aware of its responsibility ... We need not become hostages to fortune," Mr Medvedev said during his meeting with the Bulgarian, Slovakian and Moldovan Prime Ministers in Barvikha. In these countries, gas supplies are at a catastrophic low. In Moldova, no gas is reaching the republic's south or Transdnestr and the rest of the country is on a short energy ration, and fuel oil is only enough to last one week.
Europe, meanwhile, is sitting on the fence. Its official spokesman Johannes Leitenberger said it is considering the proposal. "There are some details to clear up concerning the summit's format and agreement with the Czech rotating presidency and other European partners," he said.
Mr Medvedev told the Prime Ministers that Ukraine does not want to borrow money to settle the crisis, although Russia is willing to loan it. "Yushchenko smokes his pipe and is silent: he may not need the loan," Mr Medvedev said. Ukraine's gas debt to Russia now stands at $650 million. The European Commission has no intention of issuing any loan to Kiev, its spokesman Ferran Tarradellas said in Brussels yesterday.
The Russian leader offered several solutions. The first could suit Slovakia and Moldova: Ukraine will supply the Slovaks with gas from its underground storage sites, while Russia will compensate it with deliveries for Ukraine's home consumption. "Gazprom said it had such capability," the President said. For Bulgaria, however, this option is no good - Ukraine has no underground storage facilities in that part of the country. Also, Ukrainian consent is required, which by all accounts is hard to get. Another of Medvedev's ideas is to pay for transit with Russian gas. "Where there's a will, there's a way," the Russian leader concluded.
Before meeting with the three Prime Ministers, Mr Medvedev talked with Gazprom CEO Alexei Miller and asked him about the losses Russia was suffering. "Since January 1, Gazprom has failed to receive $1,100,000 in export revenues on gas contracts with Europe," the President said. "Our country cannot afford to lose such money. Gift season is over. The money must be recovered," he said.
The follow-up reaction was immediate. Deputy Prime Minister Igor Sechin warned he would appeal to the International Arbitration Court. "It's an open and shut case," he said. Mr Sechin wondered why the Europeans filed no claims against Ukraine for the undelivered gas. European Commission President Jose Manuel Barroso, on the contrary, said that if supplies failed to resume, the European companies were recommended to go to the courts, even against the suppliers. "But the court will prove us right," Sechin said. "Let us face the truth. It is a fact that Russian gas was fed into Ukraine's transportation system and no one can reproach Russia for not fulfilling the document signed by representatives from Ukraine, Russia, and the European Commission". He said Russia was expecting "an unbiased and consolidated position" showing that Gazprom supplied the gas and that this fact was recorded by international observers. Meanwhile, the Russian exporter's losses have reached $1.2 billion. "If our Ukrainian partners get rid of the illusion that they can solve their problems at the expense of the European and Russian sides, we will get a quicker result - gas will overcome the obstacles on its way via Ukraine," Sechin concluded. In reply, Ukrainian President Viktor Yushchenko said that "Ukraine is no stealer" and promised to prove this in court.
Kira Latukhina, Pierre Sidibe