Russian Prime Minister Vladimir Putin scheduled another meeting yesterday, but decided on a Cabinet meeting at the last moment instead. It soon became clear why.
Putin opened the meeting by explaining why Russia had made big concessions to Ukraine on gas prices (a discount of $100 per 1,000 cubic metres). The prime minister said clearly: "This is payment for the Russian Black Sea Navy base's extended lease in the Crimea."
"The decision to extend the lease for another 25 years, starting in 2017, which was signed by the two countries' presidents in Kharkov, meets the vital interests of the Russian and Ukrainian peoples," he said.
Putin added that Gazprom "has nothing to do with the discount" and its shareholders "will get what they are due." The discount will be granted from Russian budgetary funds, as gas supplies to Ukraine will be exempted from customs payments to the Russian public treasury.
"This is not a simple decision for us, as the price is high," Putin admitted. "But I will ask our State Duma faction and all other deputies to ratify the agreement, as it means a qualitative breakthrough in Russian-Ukrainian relations. The main thing is not the money, gas or the Navy, but trust among two nations, a feeling of fellowship."
Putin said the gas price discounts would save Ukraine $3 billion this year, $4 billion next year, and tens of billions in the future.
"We have many partners, but the Crimea is an exceptional case due to history," Putin said. "As for our other partners, they should not bother us with similar requests." Putin did not name the "other partners," but everyone at once thought about Alexander Lukashenko.
The prime minister also spoke with the Cabinet about the results of his report to the State Duma on Tuesday. The government will have to prepare draft laws on the continuation of maternity capital payments and the use of these funds for building one's own home. The 2011 budget should provide for housing expenses, primarily for veterans and military retirees. The regions have already been given 48.5 billion roubles for this purpose.
"Remember that war veterans must not just get apartment shells, but rather ready to move in flats with telephone lines installed," he said.
In addition, the prime minister gave assignments to the agencies concerned to develop measures to modernise health care, reduce traffic accidents and enhance the efficiency of state management. The ministers were given several days – until Monday – to fulfil the assignments.
By Larisa Kaftan