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Archive for July, 2010

Ukraine plans to sign international treaties worth USD 3.9bn in 2010

Posted by the Editor on July 30, 2010


News / 30 July 2010 | 16:29

Ukraine plans to sign international treaties worth USD 3.9bn in 2010

Ukraine plans to sign international treaties worth USD 3.9bn in 2010

In 2010 Ukraine has the opportunity to hold formal talks and sign international treaties in the amount of USD 3.9 billion, First Deputy Minister of Economy Anatoliy Maksiuta told reporters on Thursday, NRCU reported.

The official emphasized that money receipts will depend on several factors. “But the amount that we will actually get depends on how quickly we prepare these projects, as well as how successfully we fulfill the conditions stated in them,” he said.

The first deputy minister noted that with an effective work on the project Ukraine will be able to get the full amount. “Previously, Ukraine’s problem was that it could not fulfill all the conditions to obtain funds. But today the situation has changed. This issue is a priority and is in permanent control of the government,” Maksiuta stressed.

Among the major projects to invest in the first deputy minister called the project on the rehabilitation of hydropower plants, construction of transportation systems, energy efficiency, etc. As of July, an active portfolio of projects of international financial institutions consists of 21 projects worth USD 2.7 billion loan.

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New Kyiv authorities dissatisfied with Chernovetsky

Posted by the Editor on July 30, 2010


News / 30 July 2010 | 14:41

New Kyiv authorities dissatisfied with Chernovetsky

New Kyiv authorities dissatisfied with Chernovetsky

Acting Head of Kyiv City State Administration Oleksandr Popov claimed that Kyiv Mayor Leonid Chernovetsky’s team was working ineffectively.

“In fact, the situation is being neglected, and the financial state of the budget indicates that,” Popov said on the 5th TV Channel.

“The budget of Kyiv is UAH 19.9 billion, and today we already have an external debt of UAH 8 billion. If we look at any municipal enterprise we see that they also have their own debts and credit obligations. This means that today we have an actual debt of UAH 10-12 billion. This is a very negative index which proves that executive branch of authorities has worked ineffectively,” he said.

Popov said he was sure that the new team at Kyiv City Administration would manage to stabilize the situation.

“I am convinced that everything will be resolved. Today there is an efficient executive authority at Kyiv City State Administration. We will improve the situation and enter the heating season properly,” he said, according to Interfax-Ukraine.

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Cabinet continues gas deal negotiations with Russia

Posted by the Editor on July 30, 2010


News / 30 July 2010 | 13:15

Cabinet continues gas deal negotiations with Russia

Cabinet continues gas deal negotiations with Russia

The Cabinet of Ministers continues negotiations with the Russian side and is trying to find arguments for the revision of gas contracts signed in 2009 by former Prime Minister Yulia Tymoshenko, Prime Minister Mykola Azarov told reporters in Kyiv on Thursday, UKRINFORM reported.

Describing these arrangements as “unfair for Ukraine,” Azarov noted that “we are forced to operate under these agreements, because they can not be canceled unilaterally. But the government at every meeting with their Russian colleagues presents arguments in favor of revising the data of gas contracts and attempts to convince the Russians of the need to do it.

The prime minister also explained that the Kharkiv agreements that were signed by the presidents of Ukraine and Russia [providing for a discount on the price of gas in exchange for the extension of presence the Russian Black Sea Fleet in Sevastopol – ed.], do not eliminate the formula by which the quarterly price of gas for Ukraine continues to grow. In particular, the gas price for Ukraine of USD 330 per 1,000 cubic meters in the first quarter will rise to USD 390 in the fourth quarter.

That is, the Kharkiv deals took away exactly USD 100 from the price of gas, but, unfortunately, they did not eliminate the formula of its systemic rise in price, the Ukrainian premier stressed.

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Azarov: 80% of IMF’s money will be invested in economy modernization

Posted by the Editor on July 30, 2010


News / 30 July 2010 | 11:05

Azarov: 80% of IMF's money will be invested in economy modernization

Azarov: 80% of IMF’s money will be invested in economy modernization

80% of funds allocated by the IMF to Ukraine the Government will use to stabilize the economic situation in the State and to modernize the national economy. The Prime Minister of Ukraine Mykola Azarov said that in an interview, Cabinet’s press office reported.

We have no plans to send the money to finance the budget deficit – a goal is only about 20% of the total tranche, and 80% will be invested in a major program of modernization of our economy,” Azarov said. He added that special attention would be paid to energy efficiency program.

The Head of Government expressed hope that in 2011 the Cabinet would spend fewer resources on paying off the budget deficit: We want to allocate more funds for the program of development of our country. We have mapped out for ourselves the trajectory, based primarily on the magnitude of the tasks we face.”

According to the Prime Minister, in general the IMF decision on resumption of cooperation with Ukraine, opens great opportunities for cooperation with the World Bank, EBRD and other financial institutions and the European Union.

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EU commissioner: Russia gas transits to Europe best via Ukraine

Posted by the Editor on July 29, 2010


News / 29 July 2010 | 14:43

EU commissioner: Russia gas transits to Europe best via Ukraine

EU commissioner: Russia gas transits to Europe best via Ukraine

Transits via Ukraine remain the most reliable means of transporting Russian gas to Europe, EU Energy Commissioner Gunther Oettinger said on Wednesday.

“It is a direct route and it provides the highest technical reliability,” Oettinger said during a meeting with Ukrainian Prime Minister Mykola Azarov in Kiev.

“We are now in a dialogue about how best to invest in Ukraine’s transport system… and how this investment may make the best business-plan for the future, more successful than South Stream,” he said, RIA Novosti reported.

Ukraine is interested in modernizing its transport system and is ready to invest in the project, Azarov said.

“However, we must have guarantees that the EU will buy certain gas volumes from Russia, which will then be transported through our territory,” he said.

Oettinger also said Ukraine may join the European Energy Community within 12 months. The community’s meeting in 2009 approved Ukraine’s membership of the organization on the condition it bring its gas laws closer to EU standards.

Some issues remained to be resolved, he said.

Azarov, however, said that Ukraine had met the membership conditions after passing the relevant law in early July.

The commissioner said the European Commission would consider the law within a week.

Ukraine currently transits 80% of Russian gas to Europe. It has been trying to persuade Russia to give up the South Stream project over fears that it will see a serious decline in gas volumes transited through its territory.

South Stream will deliver Russian gas to Western Europe bypassing Ukraine. The offshore part, operated by Russia’s energy giant Gazprom and Italy’s ENI, will run from Russia’s mainland under the Black Sea to the Bulgarian coast.

The launch of the gas pipeline is scheduled for December 2015.

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Within six months Ukraine will join the European Energy Community

Posted by the Editor on July 29, 2010


News / 29 July 2010 | 12:52

Within six months Ukraine will join the European Energy Community

Within six months Ukraine will join the European Energy Community

Prime Minister of Ukraine Mykola Azarov met with EU Commissioner for Energy Gunter Oettinger.

Prime Minister stressed that Ukraine had fulfilled the conditions for accession to the European energy community: “I want to give you our application to join the European Energy Community. We ask the Commission to consider the correspondence of our Law “On the gas market” and make the decision,” Mykola Azarov said, Cabinet’s press office reported.

Guenter Oettinger promised that next week the European Commission would review the Law of Ukraine “On principles of natural gas market functioning” according to EU norms. He noted that adoption of the law is a big step forward in solving the problems that remain in energy sector. “There are still some issues that need to be checked and solved. It is necessary to conduct some reforms, but it is in our common interest. I think that Ukraine’s membership in the European Energy Community could become a reality over the next six months – a year,” the European Commissioner for Energy said.

Mykola Azarov supported the proposal of Guenter Oettinger to organize a tripartite meeting at the highest level between Ukraine, the EU, and Russia to consider issues that certainly present common interests: energy security, long-term agreement on gas supply and transportation, reducing energy consumption. The Head of the Government said that the proposal could be discussed soon with Prime Minister of Russian Federation Vladimir Putin.

The Prime Minister noted that Ukraine is interested in upgrading its own GTS and is ready to invest heavily in this project. “But we must have assurances that the European Union will buy a certain amount of Russian gas transported by our territory, and Russia will sell the appropriate amount of gas. Provided that there are the seller and the buyer – it makes sense to invest in upgrading the GTS,” he said.

In turn, European Commissioner for Energy underlined that the most profitable and reliable way of transporting Russian gas to Europe via Ukraine, exactly via Ukraine. “This is the best way because this is direct connection and this connection provides the greatest technical reliability and safety. That is why we are now in the dialogue of how to invest best in the transport system of Ukraine, the appropriate infrastructure, and how these investments can be the best business plan for future, more successful than the “South Stream” – he said.

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IMF approves $15 billion loan for Ukraine

Posted by the Editor on July 29, 2010


News / 29 July 2010 | 11:02

IMF approves $15 billion loan for Ukraine

IMF approves $15 billion loan for Ukraine

The Executive Board of the International Monetary Fund has approved granting Ukraine a credit facility of $15.15 billion, according to the UKRINFORM.

Ukraine will be able to get about $1.89 billion immediately.

IMF canceled the previous two-year standby program totaling about $16.5 billion, opened in November 2008.

As Ukrinform reported, the Government of Ukraine hoped to start a new program of cooperation with the IMF, supported by a stand-by credit of about $15 billion, $3 billion of was to come by the end of the year.

In preparation of the new program, Ukrainian authorities, in particular, resorted to sequestration of the state budget with reduction of its deficit from 5.3% of GDP to 4.99% of GDP, increasing tariffs on natural gas for households and municipal heaters, and amendment of the National Bank Law.

According to the State Budget of Ukraine, in the current year, direct financing of the budget is to take about $2 billion of borrowings from the IMF.

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Government to increase control over arbitration managers of enterprises in default to eliminate wage arrears

Posted by the Editor on July 28, 2010


News / 28 July 2010 | 16:31

Government to increase control over arbitration managers of enterprises in default to eliminate wage arrears

Government to increase control over arbitration managers of enterprises in default to eliminate wage arrears

The Government will consider increasing control over arbitration managers of bankrupt enterprises to eliminate wage arrears. Prime Minister of Ukraine Mykola Azarov said this today, opening a Government’s meeting, Cabinet’s press office reported.

Mykola Azarov noted that the issue of wage arrears is in constant control of the Government. Thus, according to the Prime Minister, last week at the expanded meeting on unblocking this problem it have been found that arbitration managers, appointed to bankrupt enterprises, take insufficient measures to settle payments with employees.

“Today the Government will consider a draft decision that will improve the control over activities of such arbitration managers”, emphasized Mykola Azarov.

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