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Opinion: Ukraine might lose “Venko” proceedings

Posted by the Editor on July 17, 2008

News / 17 July 2008 | 12:30

Opinion: Ukraine might lose “Venko” proceedings

Justice Minister has warned
that juridical position of
Ukraine is weak, as having signed the agreement
the previous government let them do whatever is happening now. In fact, the
government should fight against certain officials rather than against the
investor. I think
Ukraine may lose the case with sad
financial consequences for the budget.

Our Ukraine deputy Ksenya Lyapina told IMC
commenting on the Vanco Prykerchenska Ltd appeal to the
Stockholm arbitration tribunal against Ukraine.

“By means of long
negotiations and postponing of the agreement, the previous government forced
the investor to include its sponsors into the company. Now we have opponent
government, and it is obvious that Tymoshenko does not want to give financial
control over such important field to her opponents,” she underlined.

“Chief financers of Vanco
Prykerchenska Ltd are Ukrainians. On one hand I understand the government, which
does not want to deal with such group. But on the other hand, such actions
discredit the name of the international investor Vanko, as nobody really
specify against who the war has been declared,” Lyapina added.

In response to the question
how the process may influence the investment climate of
Ukraine, the deputy said: “Investors
understand that
Ukraine never has stable political situation.
Big companies avoid us, but middle business is involved as they have less
dependence on the politics. Despite all this
Ukraine is an attractive country and investments
will come and grow.”

In response to the question
whether the government might reconsider its position in connection with the
latest actions, Ksenya Lyapina doubted such turn of events.

“The Cabinet knew that the
company might appeal to the international court and assumed that a lot of time
would have passed while considering the case. I doubt that the government would
change its juridical position,” she summed up.


One Response to “Opinion: Ukraine might lose “Venko” proceedings”

  1. Vic said

    Tymoshenko had said the Vanco ‘s tender which was signed by Yunykovich had “violations of legislation” and that Ukraine had given away “130 times more” than it would have been possible in any other country!…… not surprising when you learn that a major shareholding of the investment pool is Russian owned and that Vanco itself a USA compamy with Russian share components

    Considering also that this Black Sea energy reserve is in Ukrainian waters is vast and holds promises to alleviate much of Ukraine’s dependency on energy imports from Russia….. it is not surprising that this issue has escalated to level of high National Interest fand importance for Ukraine and rightly so. Also Tymoshenko in her interview to the Ukrainian TV promised to name real founders of Vanco if Yushchenko continues insisting on restoration of the license for prospecting to this company….interesting…possible Yush has share connections?

    The major difference between them is Tymoshenko is trying to bring Ukrainian Oligarchs into the picture while Yushchenko is trying to protect the current mainly Russian investors with Vanco.
    I believe that Tymoshenko’s path holds promises of less dependancy on Russian energy, jobs for Ukrainians not Russians and therefore is the wiser decision for Ukraine.


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