Rossiiskaya Gazeta: “The Market is Three Years Away: Government”
Pierre Sidibe
Vladimir Putin and Yulia Tymoshenko sign a gas memorandum
Ukrainian Prime Minister Yulia Tymoshenko arrived in Moscow yesterday to meet Russian Prime Minister Vladimir Putin to outline the gas issue. And a line will be drawn, but only in three years after the introduction of market prices.
The Ukrainian "iron lady's" road to Russia was difficult as political crisis rocked her homeland. Apparently this is what prompted the Ukrainian Prime Minister to seek support from her Russian counterpart, if only on the gas issue. Ukraine buys Russian gas at $179.5 per 1,000 cubic metres, but Gazprom has repeatedly said it is time to introduce European market prices.
Similar negotiations are underway with Uzbekistan, Turkmenistan and Kazakhstan. So the talk is about $400 per 1,000 cubic metres, whereas Ukraine's 2009 budget assumes that the gas price will be $250-300 per 1,000 cubic meters. A year ago the two heads of state agreed on a phased transition to world gas prices over a period of three to four years. This was reaffirmed by the Russian and Ukrainian Prime Ministers.
A memorandum of cooperation in gas trade signed between the Russian and Ukrainian Governments yesterday will form the basis for a long-term contract. Gazprom and Naftogaz agreed on direct contacts as of January 1, 2009 to ensure safe supplies of gas to Ukrainian consumers. Naftogaz will become the sole importer of gas.
"We have no need for shock therapy," Yulia Tymoshenko declared. Meanwhile a high-ranking source told Rossiiskaya Gazeta that in the course of talks behind closed doors Russia agreed not to raise the price of gas it exports to Ukraine above $300 next year.
However, Russia is worried about the poor state of the Ukrainian gas transport system, which also delivers Russian gas to Europe. Vladimir Putin declared that Russia would be able to meet its commitments to supply gas to Europe regardless of the state of the Ukrainian pipelines.
"Our plans to develop gas transportation routes will be implemented irrespective of the state of Ukrainian gas transportation system," he said. The Russian Prime Minister stressed that Russia has "additional capacity" to carry additional supplies to European consumers.
"There is much about the course of the political leadership that worries us. I must be quite frank about it," Putin said. He was referring above all to the position of the Ukrainian leadership in regard to Georgia's aggression against South Ossetia, but not only that.
"We are talking about attempts to distort history, attempts to rehabilitate those who collaborated with the Nazis during the Second World War," he added. "Many issues around the Black Sea Fleet are being raised artificially," he said.
Speaking on behalf of Kiev, Tymoshenko promised a more friendly policy on the issue of the Black Sea Fleet and other problems. Yulia Tymoshenko said yesterday that Ukraine must do all it can to help Russia join the WTO. This prompted Putin to express another worry: Ukraine, which joined the WTO this year, would sell its uncompetitive goods to the Russian market and thus harm Russian producers.
Gas and the WTO were not the only topics of discussion between the two premiers. They had to touch upon the theme of illegal Ukrainian arms supplies to Georgia, not a very pleasant topic for the Ukrainian delegation. It triggered a major row in Kiev. And if Viktor Yushchenko's personal involvement in the affair is proved, he may face impeachment.
"There is no greater crime than supplying arms for the murder of people, including Russian soldiers. Only a few years ago it wouldn't have occurred to anyone that Russians and Ukrainians would fight against each other. Whoever made that decision committed a major error. This is irresponsible, harmful and criminal politicking," Vladimir Putin said.
Yulia Tymoshenko expressed her doubt that the orders had been given by the President personally, although she admitted that all the arms trade was in his hands.
During the course of the joint press conference, questions were asked about the internal political crisis in Ukraine. Timoshenko said that the imbalance was due to the "development of the democratic processes and the upcoming presidential elections" in 2010. Asked which candidate Russia would support, Vladimir Putin stressed that "our country will support the Ukrainian people and respect their choice whatever it may be."
The Russian Prime Minister dismissed the clichéd rumours about the "hand of Moscow" in Ukrainian developments. Actually, the hand of Moscow "is calloused, because it is the hand of the industrious Russian people."
"It is a pity that our neighbour, a big European country, still cannot put an end to the internal political processes that impede long-term economic relations between Russia and Ukraine. We want to have a reliable and stable partner, this is in our vital interest," Vladimir Putin stressed.
Moscow issue
