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Ukraine Rewrote Agreement with Gazprom
Led by Prime Minister Yulia Tymoshenko, Ukrainian government has scrutinized the March 12 gas agreement with Russia. The revised document not only excludes Rosukrenergo from supplies but also strips it of the chance for gas transit to Europe. What’s more, Gazprom’s access to domestic market is limited to this year. The amendments of this kind apparently call for another round of negotiations.
Ukrainian cabinet deliberated yesterday on the discrepancy report to the gas agreement inked by Gazprom and Naftogaz chiefs Alexei Miller and Oleg Dubina in Moscow March 12. In new wording, the document actually breaks the agreements reached by those companies.
In the first instance, the item whereby Ukraine was buying Russia’s gas at $315 per a thousand cu meters in January and February was crossed out of the document. But Gazprom viewed exactly that provision as its key victory at negotiations.
Besides, the supplying activities of Swiss Rosukrenergo AG (Gazprom owns 50 percent, Dmitry Firtash has 45 percent and Ivan Fursin holds 5 percent) are limited to January through March. Another loss of Rosukrenergo is the ban on the gas transit (11.6 billion cu meters in 2007) to Europe. Tymoshenko said this move will allow not to confirm the 25-year gas transit contracts with the company and the use of Ukrainian storage facilities. What’s more, those contracts will be challenged “as concluded under the economically disadvantageous conditions and cancelled.”
According to Tymoshenko, the direct contract of Gazprom Export and Naftogaz for the gas of Central Asia ($179.5 per a thousand cu meters) will take effect April 1. The provision spelling out that Gazprom Export will directly supply to Ukrainian consumers at least 7.5 billion cu meters in 2008 and proceed with supplies was substituted by the sale of up to 7.5 billion cu meters in 2008 exclusively. Opening Ukrainian domestic market to Gazprom after it will be the highlight of new negotiations.
www.kommersant.com
All the Article in Russian as of Mar. 20, 2008
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