Russia, Ukraine reached new gas agreements

News / 16 April 2010 | 16:38

The Russian and Ukrainian governments approved on Friday new gas agreements reached by gas monopoly Gazprom and its Ukrainian partners, the Russian government press service said, according to RIA Novosti.

It said the agreements are based on Ukrainian President Viktor Yanukovych’s proposals and establish a new pricing structure.

“The price agreements are to be formalized through a special government resolution. Prime Minister Vladimir Putin has issued instructions that a draft resolution be prepared shortly,” a spokesperson said.

Russian President Dmitry Medvedev said earlier in the day he would meet with Yanukovych next week to discuss bilateral cooperation, particularly in the gas sector.

Medvedev told journalists that Ukraine considered the current gas prices too high and that Russia was willing to compromise.

Ukrainian First Deputy Prime Minister Andriy Klyuyev said on Thursday the Ukrainian economy was able to cope with high gas prices last year due to a 20% discount offered by Russia and large gas reserves in its underground storage facilities. The discount expired at the end of 2009 and the deputy prime minister said the current gas prices were potentially ruinous for the national economy.

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2011 budget deficit will fall to 4.5% of GDP – Prime Minister

News / 16 April 2010 | 14:41

The deficit of Ukraine’s national budget in 2011 will be 4.5% of gross domestic product,  Prime Minister Mykola Azarov told a meeting of the government committee for economic reforms, referring to the budget declaration draft.

“This size of the budget deficit was calculated proceeding from the need in spending on UEFA EURO 2012 preparations. 2011 will carry the heaviest financial and organizational burden of that effort,” the head of government noted, UKRINFORM reported.

He informed that in 201 the government would focus on effective management of the state debt. Under the draft budget declaration, the limit volume of state debt will be kept at an economically safe level of maximum 40% of GDP.

Azarov also says in 2011 the tax burden on entrepreneurs will ease, with enactment of a new Tax Code. The new taxation policy will aim at encouragement of production, investments and innovations.

The Prime Minister also noted that the share of annual GDP forecast redistributed through the consolidated budget will not exceed this year’s.

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Tymoshenko: defectors were tempted by money and power

News / 16 April 2010 | 12:49

The defectors who left the BYuT team were seduced by the power of authority and the material benefits it offered, believes Yulia Tymoshenko, the leader of the united democratic opposition.

“Individuals defectors have left our ranks. They converted the other team’s authority into their own dubious personal achievements – material or career-related,” Yulia Tymoshenko said in an interview with the magazine Korrespondent, the official website reports.

She noted that members of parliament are being offered $5 million to join the parliamentary coalition. “This is a natural choice. Can you imagine that our deputies, many of whom never saw $50,000 at once in their life, are now being offered $5 million? Young professionals are being offered high-level position,” she said.

She noted that 150 people remain in the parliamentary opposition team – true fighters as she calls them, who are “ready to take a blow.”

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Russian, Ukrainian presidents to meet next week for gas talks

News / 16 April 2010 | 11:01

Russian President Dmitry Medvedev and Ukrainian President Viktor Yanukovych will meet next week to discuss bilateral cooperation, particularly in the gas sector.

“Just next week we plan an unscheduled meeting… with President Yanukovych on the territory of Ukraine,” Medvedev said, according to RIA Novosti.

Respected Russian daily Kommersant said, quoting a source close to the visit preparations, that the date of Medvedev’s trip had been brought forward as Ukraine needs to draw a budget which depends on the prices for the Russian gas.

Medvedev told journalists in Brazil after the BRIC summit that Ukraine considered gas prices too high for the current situation in the country, and that Russia was willing to compromise.

“This is not a closed topic, I have told Ukrainian president from the very beginning that we are ready to do it,” Medvedev said.

The Russian president also said that the full range of bilateral issues would be discussed during his visit.

“I hope we will continue to discuss all these questions, including ensuring security, developing trade-economic relations, humanitarian issues,” Medvedev said.

Kommersant reported that Kiev had promised Moscow to sign a deal on nuclear fuel purchasing lasting a year and five years.

“It was also proposed to build two units of the Khmelnitsky nuclear power plant (for the Russian loans – Kommersant), so in future Rosatom [the Russian state nuclear corporation] could become the owner on an equal footing,” the paper quoted a source in the Ukrainian government as saying.

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