After his negotiations with Yulia Tymoshenko Vladimir Putin talked with Ukrainian journalists.
Ukrainian Prime Minister Yulia Tymoshenko said in Moscow yesterday that Ukraine is in favour of Russia taking part in the modernisation of the Ukrainian Gas Transportation System (GTS) despite the fact that it runs counter to Ukraine's Brussels agreement with the EU. However, as Kommersant's ANDREI KOLESNIKOV observed at first hand, these words cut little ice with Vladimir Putin who seemed to be disappointed with this Ukrainian negotiator like with all the previous ones.
At the start of their restricted-format talks Yulia Tymoshenko admitted, somewhat apologetically, that yes, Naftogaz was taking off less gas than agreed, but "we are buying as much as the crisis permits" (after all, not only Vladimir Putin has the right to cite the crisis at every opportunity).
The narrow-format talks involving seven or eight people from either side lasted about two hours. Everyone expected the enlarged-format talks, which are usually a formality and last 20-30 minutes, to begin immediately.
The enlarged negotiating parties took their seats at the table and were asked to switch off their mobile phones. Silence settled over the room.
An hour passed in silence. Then the doors opened and everybody held their breath. Nothing happened. Another 40 minutes passed.
All this time Vladimir Putin and Yulia Tymoshenko were talking one-on-one.
As they entered the room they behaved as if they had just become acquainted with each other and sat not side by side, but at a distance from each other with room between them for at least one more person, for example, Ukrainian President Viktor Yushchenko (who would probably have liked to be there). Vladimir Putin and Yulia Tymoshenko looked as if they were displeased with each other.
Mr Putin said that "the Brussels Declaration" does not have "a word about the participation of Russia, a major supplier of energy resources, in the modernisation of the Ukrainian GTS." He made it clear once again that this does not suit Russia.
"Ukraine will do everything to make sure that Russia joins the WTO," Yulia Tymoshenko responded.
This drew laughter even from the journalists present: as if this was the only thing Russia missed in its bid to join that organisation. Actually, Mr Putin, speaking a couple of weeks earlier, suggested that the failure of its bid was a blessing in disguise: God had spared Russia the ordeal of joining the WTO and the concomitant costs in time of crisis. Apparently, the Russian Prime Minister believes that accession to the WTO at the time of the world economic crisis is suicidal for any national economy.
Photo correspondents were getting ready to take pictures of Yulia Tymoshenko like professionals, standing on a podium. They asked people not to stand between the aisles proceeding on the assumption that Yulia Tymoshenko would choose to walk on the improvised podium before the start of the press conference. She appeared, wearing a milky-pink dress, called "champagne" in some circles. Her left breast was adorned with a black rose or chamomile (exactly the same colour as Vladimir Putin's suit).
"The relations in the political sphere, Mr Putin said, are not living through the best of times. We are well aware of our responsibility and proceed in a balanced way. The volume of our trade has dropped, this is the result of the world crisis... Meanwhile modernisation of the Ukrainian GTS can only be effective with Russian participation."
"The whole world watched, Ms Tymoshenko added, how the problem of Russian gas supplies (and not, in her version, of pay for the gas - A.K.) would be settled in January and how ten-year agreements on gas transit and supplies were signed. We are now talking about follow-up on those agreement and we believe that modernisation and reconstruction of the GTS can only be a joint enterprise."
These statements were little short of a sensation and were at odds with the look of the two negotiators who never exchanged a glance throughout the press conference. Perhaps they felt that this time around it would be more difficult for them to disagree than to agree, and they were loath to agree on anything, especially Yulia Tymoshenko, because any agreement with Vladimir Putin would automatically run counter to the agreements with the EU (Ukraine and the EU recently signed the Brussels agreement on the modernization of the Ukrainian GTS without Russian participation).
"I am convinced that there are no problems in the energy sphere that cannot be solved," Ms Tymoshenko added without any enthusiasm.
"On what terms will modernisation take place and in what shape?" a Ukrainian journalist asked, "considering that Kiev has repeatedly said that it does not see Russia as a participant in GTS management."
"You know that four years ago, Yulia Tymoshenko said, Ukraine passed a law whereby the GTS must remain a state-owned company and its divisions were forbidden to take part in any joint ventures. It is strictly state property. But without coordinated cooperation it will be difficult to pump gas to the EU and build new sections such as Bogorodchany-Uzhgorod. Yes, we have invited Russia to take part in the modernisation. Russia produces the pipes that we need and other units. Russia can take part by providing units, pipes and gauges..."
Ignoring Ms Tymoshenko's words, which could hardly have pleased him, Mr Putin, without looking at her, fixed his gaze on the Ukrainian journalist:
"Did you say Kiev was against Russia's participation in the modernisation?"
"Against Russia managing the GTS," the journalist corrected himself.
"We never claimed management, Mr Putin shrugged, oblivious of the journalist and the Prime Minister. As for Kiev, Kiev is a city of our destiny, the cradle of our civilisation..."
He seemed to be oblivious of those present, his thoughts wandering to something less ephemeral and weightless than natural gas (not liquefied gas, of course), but he checked himself:
"We are the only and sole supplier of gas that goes through the Ukrainian GTS. When we see that the annual capacity is to be increased by 60 billion cubic metres, we cannot help asking, where will the gas come from? We should at least have been consulted..."
He became thoughtful again, and one had the impression that he had lost all interest in the topic and that he had long known all the answers regarding modernisation and the cradle of civilisation.
"Some time ago there was a proposal to create an international consortium with EU and Russian participation which would lease the Ukrainian GTS while it would remain the state property of Ukraine. I see no minuses there... But of course Ukraine has the final say because it is its property," Mr Putin concluded.
After a pause the Russian Prime Minister perked up:
"The Brussels document says that a new legal entity may be created...We have many contracts with Naftogaz... We are not gate-crashing, but our opinion must be taken into account in solving the issues of modernisation and other issues..."
Answering a question from RIA Novosti's correspondent, Yulia Tymoshenko said that under an agreement with Russia, Ukraine now pays only for the gas it consumes itself.
"We adjust the volumes in accordance with the crisis," she said without sounding apologetic at all.
She added that filling Ukraine's gas storage facilities was a problem.
"The gas is not paid for by the consumer and it requires credits," the Ukrainian Prime Minister admitted.
"We have agreed, Vladimir Putin confirmed, and the failure to take off all the gas is not due to sloppiness, but due to the world economic crisis...So we do not avail ourselves of our right to impose fines."
He also commented on the problem of pumping gas into underground reservoirs saying that it would cost at least $5 billion.
"As of today, the final decision regarding that money has been taken... no, it hasn't," he corrected himself, "we have yet to determine in what direction these talks could proceed..."
The only hard facts are that Ukraine needs to fill its underground reservoirs and that this is in the interests both of Russia and the EU.
The irrepressible Ukrainian journalist proposed a simple way out: to pay for filling the underground gas storage facilities with future proceeds from the transit of Russian gas to the EU via Ukraine.
"Gas is needed. But nobody will bring it in buckets, the Russian Prime Minister sounded more alert. So, all the issues will have to be negotiated with Russia."
"But there already exists a declaration with the EU," the journalist pressed on.
"One can agree with the EU or one can agree with Nepal... You go to Brussels, get the money, pay 5 billion for gas in storage - and that's that," Vladimir Putin challenged the journalist.
Faced with such a prospect, the journalist swayed and plopped not into his seat, but into the next one which was already occupied. The dictaphone fell on the floor and rolled.
"Is that a fight starting there?" Vladimir Putin enquired, "a bit too early."
All this time a bewildered Yulia Tymoshenko looked alternately at Vladimir Putin and the journalist, apparently expecting that the Russian Prime Minister would discuss these matters with her and not with him. But this did not seem to be Mr Putin's plan.
"I hope we will find common ground, Yulia Tymoshenko chipped in, to do this work together... (the three of them, including the journalist? - A.K.)."
"Actually, it was just a minor clarification," the same man popped up again. "But I have a serious question: you have said that an agreement has been reached on cuts in gas supply..."
"On non-use of sanctions," Mr Putin interrupted him. "The fine is $2 billion."
"It will not be imposed?"
Mr Putin shook his head.
He knew as well as everyone that if Russia presented claims to Ukraine it would itself face the same claims from Turkmenistan, for example.
As it is, Russia has some kind of an argument in the negotiations with it.
Vladimir Putin vehemently opposed the idea of paying for gas in storage out of the cost of future transit of Russian gas via Ukraine.
"If the Ukrainian GTS changes as a result of the Brussels accords?" he asked the journalist who rose from his knees for an umpteenth time. "We will have pumped in the gas and the money will still not have been paid. Whom would we bring to account? What if Naftogaz ceases to exist? We discussed this problem without kick and dust. There may be a solution, but it is premature to talk about it."
"We have proposed an intergovernmental agreement that can solve these problems," Ms Tymoshenko added. "We will submit the draft for mutual consideration."
But it was clear that Mr Putin was not inspired by the agreement under which Russia would build an additional pipeline together with Ukraine.
In general, he did not look charmed either by the visit or the visitor.
