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Today is Dec. 1, 2008 11:11 PM (GMT +0300) Moscow
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Feb. 27, 2008
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Tymoshenko Unwilling to Settle President’s Debt
In an escalation of another gas row of Moscow and Kiev, Gazprom anew threatens to cut gas supplies to Ukraine, giving March 3 as the deadline. The official reason is the delay in debt payment and the general unwillingness of Ukraine to stick to delivery procedures agreed on by presidents of both countries - Prime Minister Yulia Tymoshenko hasn’t opened the domestic market for Gazprom. Ukrainian cabinet announced yesterday they settled 2007 debt in part and in whole, while Gazprom firms confirmed the receipt of no more than $280 million.
The monopoly may cut gas supplies to Ukraine by 25 percent at 10:00 a.m. March 3, Gazprom spokesman Sergey Kupriyanov announced yesterday. People in Gazprom attribute the potential reduction to the breach of agreements reached by President Vladimir Putin and President Viktor Yushchenko February 12. The matter at stake is the delay in paying the debt of Ukraine to Gazprom and sealing a new agreement between the monopoly and Naftogaz Ukrainy (the gas has been supplied to Ukraine without any contract since early this year).

According to Kupriyanov, the package of all required documents was sent to Ukraine far back February 14. “No official answer has been given, the documents are still unsigned,” Kupriyanov said, adding that Ukraine has accumulated 1.9 billion cu meters of Russia’s gas without any sales contract. “It can’t continue this way.”

Russia’s and Ukrainian presidents agreed February 12 that Naftogaz Ukrainy would pay off $1.5 -billion debt to Ukrgaz-Energo in whole, and Gazprom and Naftogaz would set up two new ventures pari passu instead of Rosukrenergo (Gazprom owns 50 percent, Ukrainian businessman Dmitry Firtash has 45 percent and Ivan Fursin owns 5 percent) and Ukrgaz-Energo (where Rosukrenergo and Naftogaz own 50 percent each).

It looks like the recent threat of Gazprom has taken effect. In the yesterday’s telegram to Tymoshenko, Yushchenko committed the prime minister to take expedient and complete measures to settle the debt and ink the agreements. Tymoshenko will personally report to the president about his order’s execution today at 9:00 a.m.

But the debt clashes notwithstanding, the timing of Gazprom ultimatum is interesting. A source in the oil and gas department of Ukrainian fuel and energy ministry said it appeared after Tymoshenko’s government again rejected to create a venture with Gazprom that would sell gas on domestic market of Ukraine.
www.kommersant.com

All the Article in Russian as of Feb. 27, 2008

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