Komsomolskaya Pravda: "Vladimir Putin tells Ukraine to lay its cards on the table"
Kiev wants cheap gas and long-term gas transit contracts.
Prime Minister Vladimir Putin spent Cosmonautics Day on more down-to-earth problems. He went to Kiev to discuss a complicated economic deal and started by asking his Ukrainian counterpart, Nikolai Azarov, to lay his cards on the table.
The prime ministers of both countries congratulated their compatriots on the 50th anniversary of Yury Gagarin's flight. The routine talk about record trade growth was followed by talks on the sensitive gas issue.
Azarov defined the interests of his country. He said current gas prices were too high and that Ukraine wants what he called market prices. He asked Moscow to speed up the offer of a new gas contract and even announced Ukraine's willingness to exchange assets between Naftogaz and Gazprom. This has been Putin's long-standing offer.
However, Ukraine also wants guarantees from Russia that the transit of gas to Europe via its territory will be long-term. Russia is proceeding with Nord Stream and South Stream that will be alternatives to the Ukrainian pipeline.
Kiev is also worried that bilateral trade may become difficult after the formation of the common economic space. Azarov said it was necessary to lift barriers between the two countries. In the meantime Russia has again imposed duties on Ukrainian pipes.
Putin did not agree that the formation of the Customs Union would threaten bilateral trade. In turn, Russia is worried by Kiev's plans to create a free trade zone with the European Union (EU). In this case Ukrainian goods would fail to be competitive with the European products and they would instantly flood the Russian market, compelling Moscow to tighten its borders with duties to protect its own producers.
"Each side should lay its cards on the table. We must see where we are. Only in this way will we be able to find a win-win solution," Putin emphasized.
President Viktor Yanukovych said last week that Ukraine has not ruled out participation in the Customs Union, but could only take part in it on a three-plus-one formula. In practical terms, this means that Ukraine wants to be involved only in the beneficial projects of the union's three members. Yanukovych wants to keep a foot in both worlds – to take part in the Customs Union and to form a free trade zone with the EU. But this scenario only suits Ukraine.
Putin explained that Ukraine will get more from uniting with its former Soviet neighbours. Based on expert estimates, Ukraine's gain from joining the Customs Union would be about $9 billion per year.
Nigina Beroyeva
