Gazeta (Moscow): Ukrainian Prime Minister brings a dozen proposals for cheap gas
Nikolai Azarov calls on Vladimir Putin to turn over a new leaf.
On Tuesday, Russian Prime Minister Vladimir Putin met in Novo-Ogaryovo with his Ukrainian counterpart Mykola Azarov, who had arrived in Russia in his new capacity for the first time. Azarov came to the Novo-Ogaryovo residence from the Gazprom headquarters where he met with Gazprom CEO Alexei Miller. The talks showed that, despite Viktor Yanukovych's rise to power, it will still be difficult for the two countries to agree up front on new gas prices for Ukraine. The start of the meeting was significant even before the exchange of greetings: Azarov entered the office carrying a large leather folder with the state emblem of Ukraine on the cover, Putin met him empty-handed
Azarov talked at once about the need to build new relations between the two countries. "I am calling on you to forget whatever has happened between our two countries and to start our relationship from scratch," he said.
Both prime ministers said, not without pride, that they intended to restore economic relations between the two countries. However, Putin's reaction to Azarov was much more reserved than to his predecessor, Yulia Tymoshenko. The Russian Prime Minister obviously enjoyed long talks with her. Their last meeting in Yalta in November lasted six hours. Meanwhile, Putin and Azarov are not unfamiliar to each other. At the beginning of the meeting, Putin recalled that he knew Azarov well, probably since he was Deputy Prime Minister in both Yanukovych governments.
Whereas Putin was quite reserved, it was clear by the look on Azarov's face how important it was for him to attain understanding with the Russian Prime Minister. He said up front that he had brought a package of new agreements to Moscow and proposed immediately discussing and preparing them for signing. Azarov's ardour was easy to explain: preparations for the forthcoming visit of Russian President Dmitry Medvedev to Kiev, slated for May 17, were listed as one of the main goals of Azarov's visit to Moscow.
"We could noticeably expedite our work on some projects and show that we are not just exchanging words but are ready to work constructively together, step by step," Azarov said. He also said that for the first time in many years the government, the parliament and the president of Ukraine were on the same page in aiming for the economic stabilisation in Ukraine. "A major condition for stabilisation is, undoubtedly, the restoration of relations with Russia in full volume. We'll do our best to resume our cooperation," the Ukrainian Prime Minister assured Putin.
Putin said in turn that it was necessary to restore trade which has dropped nearly twofold due to the crisis. In Putin's opinion, the interdependence of many economic sectors in the two countries will also help to restore the old positions.
The prime ministers' conversation lasted three hours. After the meeting, they appeared in front of journalists in high spirits.
However, the visiting prime minister said in an injured voice that, as soon as he left for Moscow, the Ukrainian media announced that Azarov was going to "surrender our pipelines in exchange for cheap gas." He denied having made such an offer and asked Putin to confirm this for the press. "But you did make some other offers," Putin said with a smile.
Azarov said once again that the agreement Putin signed with his predecessor a year ago was unfair but he promised that in April Ukraine would pay fully for gas at current prices. The prime ministers agreed to hold a meeting of the intergovernmental commission in mid-April which will focus on the drafts of the dozen agreements Azarov brought to Moscow. The Ukrainian Prime Minister said that during the talks they would find some ways to compensate Moscow for its consent to cut the "unfair" gas price.
Though Azarov swore that he had not given away any pipelines, both prime ministers confirmed that they would not object to a discussion of Russia's participation in a consortium to manage the Ukrainian gas pipeline system.
Konstantin Bondarenko, director of the Kiev-based Gorshenin Institute of Management Issues, told Gazeta that "Ukraine and Russia are heading for some involved talks."
"Ukraine may offer a great deal in exchange for lower gas prices, including Russia's participation in a gas pipeline consortium, the privatisation of some facilities and the establishment of intermediary companies like Rosukrenergo. The main thing is the terms on which these proposals will be accepted. Certainly the country's economic situation is complex, there is no time to lose, but I think the Kremlin has no illusions that it will be easy to negotiate with the Yanukovych team. It is quite possible that the bargaining will last awhile," the expert said.
Vadim Kolesnichenko, deputy of the Ukrainian parliament from the ruling Party of Regions, also admitted that, following talks, both sides could reach an agreement on Russia's participation in the Ukrainian gas transportation system. "This will benefit both Russia and Ukraine, Ukraine over the long term. Otherwise, when the Nord Stream and South Stream pipelines are commissioned, our country will find itself in a less than ideal situation," the deputy told Gazeta.
Gennady Derevyansky, Anastasia Novikova
