Ukraine ex-premier, gas chief clash over deal with Russia

 

Yuliya Tymoshenko, the former Ukrainian prime minister, and Oleksiy Ivchenko, the head of the Naftohaz Ukrayiny state oil and gas company, have accused each other of promoting the interests of gas intermediaries. Speaking in the studio of the 5 Kanal TV channel, as monitored by the BBC Tuesday, Tymoshenko said the best way out of the crisis would have been to stick to the existing agreement and go to the Stockholm court if Russia had switched off gas. Ivchenko defended the gas deal with Russia's Rosukrenergo and Gazprom, which was signed on Jan 4.

Asked if the agreement harm or assist in improving Ukraine's image in the world and with its partners, the EU and Russia, Tymoshenko said that, according to the existing document, Gazprom would guarantee the Ukrainian gas balance on an annual basis in 2005-09 as payment for the transit services it afforded to Gazprom. The agreement also said Russian gas would be transported through its neighbor at $50 per 1,000 cubic metres, which was not subject to change by the sides.

"This document [Appendix No 4] is legal and valid, which is why there was no need to sign anything. The document that was signed on the night of Jan 3-4 totally ruins the strategy for ensuring gas supplies to Ukraine," Tymoshenko.

"First of all, a totally dubious company, Rosukrenergo, has now been made the monopolist responsible for guaranteeing natural gas supplies to Ukraine, and without any guarantees it has been given the right to ensure Ukraine has gas supplies. The deal that was signed envisages that Ukraine fixes the price for transit of gas through Ukraine for five years, while Rosukrenergo gives Ukraine the price of $95 for only half a year without any guarantees."

Asked if the deal signed between Naftohaz and Gazprom was a convenient way of striking a blow to political opponents that actually harmed Ukraine's image, Ivchenko accused Tymoshenko of using the gas issue as as electioneering tool. He added that when Tymoshenko was prime minister, she personally demanded from him, in writing through cabinet directives, to cancel the original agreement.

"I did not carry out her orders and that is why Appendix No 4 was not annulled and it really was an argument to defend the terms which are extraordinarily necessary for Ukraine in gas matters and evidence of this is the agreement we signed recently with Russia's Gazprom."

Tymoshenko accused Ivchenko of promoting Rosukrenergo and Itera. "I demanded one thing from Mr Ivchenko and all those responsible for this sector. I demanded that ties with Rosukrenergo be severed, because it has led to a situation that in 2005 Ukraine failed to receive 20-bil cu m of gas," she said.

"Appendix No 4 has several aspects. It, like the said cabinet resolution provided for a reduction in payment of Ukraine's debt obligations to Russia from ten years to five and for payment in gas. And in this section, which contravenes the ratified agreement, without doubt Appendix No 4 had to be either annulled or amended in certain parts, which contravene the ratified agreement...it was difficult to find a bigger supporter of Rosukrenergo than Oleksiy Ivchenko."

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