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Ukrainian Prime Minister Yulia Tymoshenko
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Feb. 06, 2008
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Yulia Tymoshenko Launches the Gas War
Urged by the National Security and Defense Council to prevent collapse of Neftegaz Ukrainy, Ukrainian Prime Minister Yulia Tymoshenko held a special meeting and blamed the contract violation on Swiss trader, RosUkrEnergo, Vremia Novostei (VN) reported.
Starting from November of 2007, all talks about RUE meeting gas requirements of Ukraine are a myth, they haven’t supplied the gas to Ukraine today. They have neither signed the agreements, nor handed the gas over via the reports, Tymoshenko said.

According to Tymoshenko, Neftegaz closes the internal gas balance by its own resources. The prime minister pledged to go to the Security Council, Prosecutor General Office and Interior Ministry, accusing RosUkrEnergo and Ukrgazenergo of subversive activities in Ukraine.

For Ukraine, the procedure for gas supplies is as follows: Gazprom buys gas in Middle Asia and sells it to RosUkrEnergo (roughly 57 billion cu meters to 58 billion cu meters). Under the 2008 contract, RUE is to sell to Ukrgazenergo 55 billion cu meters of this amount at $179.5, while the remainder (along with a portion of gas from Ukrainian underground storage facilities that the trader owns) is to be exported to Europe. The price for Neftegaz was assumed to equal $185 per a thousand cu meters.

According to VN, exactly Neftegaz that has turned into a constant battle ground in Ukraine hasn’t been inking the acceptance reports for the gas since November, refusing to transfer money for supplied gas. Moreover, Neftegaz hasn’t been officially buying the gas since early this year, as the contract with Ukrgazenergo that receives the gas from RUE hasn’t been signed yet.
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