Yushchenko asks Russia to alter gas contract

Ukrainian President Viktor Yushchenko has asked Russia to amend the existing natural gas supply contract as soon as possible, to avoid problems with gas transit to Europe, according to RIA Novosti.

In an open letter to President Dmitry Medvedev posted on his official website on Thursday, Yushchenko criticized the gas contract signed between Ukraine's Naftogaz and Russian energy giant Gazprom at the start of 2009.

"For Ukraine, honoring its commitments is too burdernsome due to the non-market principles that the contracts are built on," the Ukrainian leader said.

Yushchenko said the price of Russian natural gas for Ukraine has almost trebled over the past three years, and now exceeds the average price for European Union consumers. He said the price of gas transit via Ukraine was three times lower than that charged by EU gas transiting countries.

He also complained that the gas contract envisages fining Kiev for failure to honor commitments, while no potential sanctions could be imposed on Russia in a similar scenario.

Yushchenko also blamed the contract for Naftogaz' budget shortfall of over $4 billion this year.

"Unless the contracts remain unchanged, the Ukrainian state-run company will not be able to prepare for the winter season and therefore potential threats will arise concerning the security of gas supplies to Ukraine and its transit to other European countries," he said in the letter.

He proposed establishing a bilateral working group to consider the proposed amendments, which include symmetrical responsibility for risks and fines for Russia and Ukraine, an improved transit price formula, and a commitment not to fine Ukraine for under-importing gas in 2009.

Russia and the European Union signed on Monday a memorandum on an early warning mechanism to protect the EU from potential energy supply cuts in case of a gas dispute between Russia and Ukraine at the start of the year.

ForUm

Discuss news in the Forum

One-line news

13:19 In Davos, President Viktor Yanukovych took part in a World Economic Forum session “New Energy Architecture: Enabling an effective transition.”

10:10 In Davos, President Viktor Yanukovych took part in a session of the World Economic Forum titled "Energy for Economic Growth.” During the session, President Yanukovych brought up the issue of energy security of Ukraine, and told about the implementation of new technologies to use alternative and unconventional energy sources in our country.

24 January 2012

13:48 A Ukrainian delegation has left for Washington to hold talks with the International Monetary Fund (IMF), Ukrainian Finance Ministry spokesperson Viktor Kosarchuk has said.

All news

News

10 February 2012

17:20 Russia to exclude Ukrainian goods if Ukraine refuses to join Customs Union

16:50 Russian ambassador: Kyiv and Moscow will agree on gas within the nearest future

16:20 Azarov promises to send 10 thousand students to study abroad

15:45 PM Azarov: Ukraine found new suppliers of gas and oil

15:20 Ukraine preparing for presidency in OSCE

15:05 Tymoshenko's daughter appeals to Prosecutor General about torture of her mother

14:45 Teishera was misquoted regarding his statement of FTA between Ukraine and EU, EU representative office says

14:20 Ukraine, Latvia sign program of economic cooperation until 2013

14:00 Teishera: FTA with CIS and EU is impossible

13:30 Tymoshenko starts serving her term in prison

13:05 Security Service of Ukraine warns about Internet frauds

12:40 Agriculture Ministry asks grain traders to refrain from wheat exports

12:15 Justice Minister: Tymoshenko was convicted in accordance with European norms

11:50 Justice Ministry to reform High Justice Council

11:30 Baloha: We do not need stratospheric means to settle homeless people

All news

Top

Editorial staff:english@for-ua.com
Republication or redistribution of ForUm content, including by framing or similar means,
is allowed with the reference to en.for-ua.com only.
All rights are reserved by © LTD. Inter-Media, ForUm 2001-2012