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Archive for July 14th, 2010

Azarov: Work on subsidies allocation to citizens for utilities is to be completed by September 1

Posted by the Editor on July 14, 2010


News / 14 July 2010 | 14:30

Azarov: Work on subsidies allocation to citizens for utilities is to be completed by September 1

Azarov: Work on subsidies allocation to citizens for utilities is to be completed by September 1

Government sets one and a half month for the whole complex of works on the subsidies allocation to citizens to pay for gas, Prime Minister of Ukraine Mykola Azarov announced today at the Cabinet’s session.

“For all this work on the appointment of the target state aid to pay for public services the Government had planned one and a half month. By September 1, there should not be a single family which would not know about new opportunities for assistance, to save the family budget, and which did not use the opportunity provided by the Government,” the Head of Government said.

Mykola Azarov requires all ministries and departments, local administrations and regional bodies of state agencies involved in organizing additional social protection, to carry out this ambitious work on time and with maximum care to the people: “We will evaluate the performance of the final result: that from 1st September each citizen, requiring for the state aid, could get it for sure.”

The Prime Minister noted that all the responsible authorities have sufficient organizational and technical resources to complete the task, even at the height of the holiday period.

It is also extremely important, Mykola Azarov said, that all necessary work is to be carried out without the confusion and complaints from citizens: “I warn you that the Government will essentially come to evaluation of this work with people. Regarding those who react to it irresponsibly or indifferently will be put under stringent actions

The Head of Government noted that the Government is now dealing with a difficult affaire – corrects enormous populist socio-economic distortions that have been prevented by the previous government: “It is clear that this is not a simple matter and people should understand and feel that in reality it is the only way for new quality of life. Outdated disease at the last stage cannot be cured by sweet pills and bravura march.


According to him, if this phase will take place with the understanding and support of people whom the government would protect from overload, then it will open the way for reform of housing and communal services, to ensure that these services would be in Ukraine of high quality and meet European standards.

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Government takes unpopular step increasing gas price for population

Posted by the Editor on July 14, 2010


News / 14 July 2010 | 12:47

Government takes unpopular step increasing gas price for population

Government takes unpopular step increasing gas price for population

Ukraine, bowing to pressure from the International Monetary Fund ahead of a new loan deal, will take the painful step of raising gas prices for households from next month, the government said on Wednesday.

Prime Minister Mykola Azarov said the 50 percent price hike, an unpopular move aimed at cutting the budget deficit, was necessary to secure a new $14.9 billion stand-by facility from the Fund.

“We have to tell people the truth. In these circumstances, we had no other choice than to agree with the IMF on financial support,” Azarov said at a televised government meeting.

“In talks with the IMF, the government defended its own vision of ways to combat the crisis and protect the people. But the creditor’s position is always stronger than that of a weakened country in need of support.”

The price hike will affect about 18 billion cubic metres of gas a year, used for cooking in apartment blocks and heating in small houses. This represents a significant part of the 47-50 billion cubic metres Ukraine consumes every year.

Azarov said the government, which is committed to fighting poverty in the country, would widen the list of poorer households eligible for social security payments to partly offset higher gas bills.

Ukraine reached a preliminary agreement with the IMF this month on a new $14.9 billion stand-by facility needed to plug holes in its budget.

Under the deal, it needs to reduce the consolidated budget deficit to 5.5 percent of gross domestic product this year from the earlier projected 6.3 percent.

The Ukrainian government has to present a letter of intent to the IMF which should lead to approval of the deal by the IMF board and the unlocking of a first tranche of credit, possibly in August.

According to the National Electricity Regulatory Commission, the price of natural gas for customers who consume less than 2,500 cubic meters per year and have gas meters will be 72.54 kopecks per cubic meter (from the current 48.36 kopecks), and for those who do not have gas meters 79.8 kopecks per cubic meter (from 53.16 kopecks) (UAH 7.90 / USD 1).

The price of natural gas for those who consume up to 6,000 cubic meters per year and have gas meters will total 109.8 kopecks per cubic meter (from 73.2 kopecks), and for those who do not have gas meters 120.78 kopecks per cubic meter (from 80.52 kopecks).

Those who consume less than 12,000 cubic meters of natural gas per year and have gas meters will have to pay 224.82 kopecks per cubic meter, instead of the current 149.88 kopecks, and those who do not have gas meters will have to pay 247.32 kopecks per cubic meter, instead of 164.82 kopecks.

Those who consume over 12,000 cubic meters of natural gas per year and have gas meters will pay 268.56 kopecks per cubic meter (from the current 179.04 kopecks), and those who do not have gas meters will pay 295.41 kopecks per cubic meter (instead of the current 196.86 kopecks.)

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Tymoshenko accused Yanukovych & Co.’s of involvement in illegal gas deal

Posted by the Editor on July 14, 2010


Analytics / 14 July 2010 | 12:44

Tymoshenko accused Yanukovych & Co.'s of involvement in illegal gas deal

Tymoshenko accused Yanukovych & Co.’s of involvement in illegal gas deal

Yulia Tymoshenko has provided the temporary parliamentary committee investigating the circumstances behind the Stockholm arbitration court’s ruling with documents proving the involvement of President Viktor Yanukovych’s team in RosUkrEnergo’s gas deals as well as documents indicating that her government acted legally in providing customs clearance for natural gas during the gas crisis in early 2009.

“Minister of Fuel and Energy Yuriy Boyko has direct ties to RosUkrEnergo, and the documents that I would like to hand over to those in charge of the temporary investigative committee prove this. In my hands is a power of attorney signed in the city of Kyiv by which Mr. Dmytro Firtash, who doesn’t hide that he is the owner of RosUkrEnergo, gave Mr. Boyko full rights to his shares,” Yulia Tymoshenko said during a meeting of the special committee.

The former prime minister also provided the committee with the minutes of the annual RosUkrEnergo management meeting “during which Gazprom was represented by four people, and the other company that founded RosUkrEnergo – Centragaz – represented the Ukrainian side. The founders of Centragaz that were present at the RosUkrEnergo annual meeting were represented by Yuriy Boyko. In other words, he represented a private company that founded RosUkrenergo at the same time that he was the head of Naftohaz, when all these corrupt deals in Ukraine were being created.”

Tymoshenko also provided the committee with the purchase-sale agreement for the 1.7 billion cubic meters of natural gas. “This is the purchase-sale agreement with Gazprom that outlines the purchase of this gas and the payment for it. I would like to give the committee this document because it includes all the signed acts of transfer for this gas between Gazprom and Ukraine, indicating that Naftohaz bought this gas absolutely legally.”

Other documents presented by Yulia Tymoshenko included the decision by the Shevchenkivsky District Court in Kyiv on the legal customs clearance by Naftohaz of 11 billion cubic meters of gas. “The people against whom criminal cases have been opened, customs officials, the managers of Naftohaz, including Didenko and the head of the energy customs service, appealed to the Shevchenkivsky District Court against the criminal gas and certain procedures.”

“The Shevchenkivsky District Court ruled that the customs service and Naftohaz acted legally when clearing through customs for Naftohaz the 11 billion cubic meters of gas that RosUkrEnergo now wants,” explained the former prime minister.

“I would like to present agreement 14-935-3/4 – this is the agreement that was signed in 2004 and is the key piece of evidence on the corruption of the officials and owners of RosUkrEnergo. One of the clauses of this agreement indicates that Naftohaz acted according to the law. Clauses 5.6, 5.7 and 5.8 directly say that if RosUkrEnergo, which is an intermediary between Gazprom and Naftohaz, doesn’t pay for something, then Naftohaz can make this payment, as well as claim the gas and other things that are owned by RosUkrEnergo.”

The former prime minister also provided the committee with the conclusions by an independent international organization regarding RosUkrEnergo’s activities. “Back when RosUkrEnergo began its corrupt deals in Ukraine and other European countries, at the request of many European countries, Global Witness, an international group that has no connection to Ukraine, investigated RosUkrEnergo’s activities. It reached the conclusion that RosUkrEnergo is a large shadow company that made its shadow money as an intermediary in natural gas deals, and which did so illegally, dishonestly, and corrupted the country’s top political leadership,” said Tymoshenko.

In addition, Yulia Tymoshenko warned that Ukraine’s financial system risks destabilization should the Stockholm arbitration court’s ruling calling for RosUkrEnergo to be compensated for 11.1 billion cubic meters of natural gas issued in 2009 to Naftohaz of Ukraine be carried out.

“If $5.4 billion is taken from Ukraine then this will certainly result in an increase in gas prices for the population in the near future, and will affect the stability of the national currency. If they take this money from the state it will affect that stability of payments from the state budget of money for the Pension Fund, money for salaries, for support of the real sector of the economy,” Yulia Tymoshenko said today during a meeting of the temporary parliamentary committee investigating the decision by the Stockholm arbitration court.

The former prime minister highlighted that the amount to be compensated is equal to 20% of the State Budget. “It’s clear that when such a sum is taken from the country, then it becomes lost. They need to clearly say where this $5.4 billion will go. This is the largest corrupt deal to ever be carried out by the ruling government in all of Ukraine’s independence.”

Tymoshenko thanked the committee for the openness of its activities and attempt to investigate the situation objectively. “I’m very grateful that you’re not remaining silent, that you’re investigating this publicly, and that you’re providing the country with all the relevant information.”

“If today’s politicians, law enforcement and courts are so spineless and weak-willed, so incompetent and afraid, and so bribed that they won’t give this a proper assessment, then sooner or later, when power in Ukraine changes, an assessment will be made, because I think any normal country wouldn’t allow a portion of the state’s gold and foreign currency reserves to be taken illegally and without a trade,” said Tymoshenko.

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Tymoshenko: the authorities continue to appoint personnel from Donetsk

Posted by the Editor on July 14, 2010


News / 14 July 2010 | 11:02

Tymoshenko: the authorities continue to appoint personnel from Donetsk

Tymoshenko: the authorities continue to appoint personnel from Donetsk

The appointment of Anatoliy Holovin as the head of the Constitutional Court of Ukraine is a continuation of the process to concentrate power in the hands of representatives of the Donetsk region, says Yulia Tymoshenko.

“They’ve again appointed someone from Donetsk. It seems to me that Donetsk is the pool for personnel to be placed throughout Ukraine, regardless of the oblast or government agency. The Prosecutor General is run by people from Donetsk, the Constitutional Court – from Donetsk, most of the heads of oblasts and raion administrations are from Donetsk,” Yulia Tymoshenko said, commending on the new appointment.

Following the completion of the three-year term of the former head of the Constitutional Court, Andriy Stryzhak, on July 12 a special plenary meeting was held to select a replacement. Andriy Holovin, who was born in Mariyivka in the Donetsk oblast, was appointed the new head of the Constitutional Court.

In August 2006, Anatoliy Holovin was appointed a judge of the Constitutional Court by the Verkhovna Rada, and was made deputy head of the court on 10 September 2008.

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