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GISMETEO.RU
UJ Week
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Nation    

Russia to EU: Hands off Ukraine dispute
Journal Staff Report

KIEV, Sept. 8 - Russia said Thursday the European Union must stay away from getting involved in its escalating natural gas dispute with Ukraine for the sake of Europe’s energy security.

Russia’s Foreign Ministry reacted to comments made by Polish Foreign Minister Radoslaw Sikorski on Wednesday that the EU may carry out an audit of a controversial 10-year gas agreement between Kiev and Moscow.

“The extremely clear legal framework of the matter does not require any external audit, and should be understood by all those interested in ensuring European energy security,” the foreign ministry said in a statement.

Ukraine has been unsuccessfully trying to renegotiate the agreement for the past 18 months, complaining that it sets gas prices for Ukraine that are higher than what Germany pays.

Ukrainian President Viktor Yanukovych argued earlier this week that Ukraine is much closer to Russia, the source of gas, than Germany and that’s why should be paying lower gas prices.

Ukraine is also buying more gas than Germany, and should qualify for additional discount, Ukrainian Prime Minister Mykola Azarov has said.

Russia refused to cooperate. Russian Prime Minister Vladimir Putin said Ukraine could win lower gas prices if it abandons plans to sign a free trade agreement with the EU, and joins a Moscow-led trade bloc instead.

The gas agreement was negotiated by Putin and by then-Ukrainian Prime Minister Yulia Tymoshenko and signed in January 2009 to end a standoff over gas prices that had kept much of Russian gas supplies to Ukraine – and to Europe – shut for almost two weeks.

Tymoshenko is now on trial in Kiev for allegedly forcing Naftogaz Ukrayiny to sign the agreement without securing a proper approval from the government.

Meanwhile, the suggested idea of getting the EU involved into the escalating gas dispute between Russia and Ukraine underscores concerns in Brussels that developments may get out of control and again lead to gas supply disruptions.

Russia moves up to 80% of its Europe-bound gas via gas pipelines in Ukraine. Russia accounts for 25% of Europe’s overall gas demand.

Yuriy Kostenko, an opposition lawmaker and the leader of the conservative Ukrainian People’s Party, said Ukraine welcomes the involvement of the EU that would improve transparency of the gas dealing with Russia.

“Russia is not interested in the EU’s involvement because maximum transparent gas relations with Ukraine will end shadowy deals favoring undisclosed personalities,” Kostenko said.

He said other European countries, such as Germany and Poland, are currently trying to renegotiate their own gas agreements with Russia and seek to change a formula that links oil prices and gas prices.

“This is what Ukraine is interested in too,” Kostenko said. (sb/ez)




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