What was the deal in Zavidovo?

Ukraine’s Energy and Coal Industry Minister Yurii Boiko said toward the end of September that our country and Russia had reached the technical phase of the gas accords, although offering no details.

Boiko also said that the deal was based on the arrangements made during the meeting between presidents Viktor Yanukovych and Dmitry Medvedev, with Prime Minister Vladimir Putin in attendance, on September 24 in Zavidovo (Russia). On October 25, Viktor Yanukovych declared that considerable progress had been made during the talks. Prime Minister Mykola Azarov warned that, despite this progress, there would certainly be people dissatisfied with the new gas accords.

Such ambiguous statements by the political leadership should be regarded as proof that the government tries to keep away from the public eye the details of the new gas deal with Russia, claims the opposition. In an interview with Radio Liberty, MP (NUNS) Anatolii Hrytsenko, chairman of the VR’s national security and defense committee, said that two weeks ago he had demanded knowledge of the directives on the basis of which lower gas prices were negotiated: “At least the VR leadership and chairmen of the committees should be familiarized with the directives Yurii Boiko received during the talks, so there would be no repetition of the situation in which Tymoshenko stood trial, with someone exceeding his/her authority, someone issuing directives.”

RUSSIA’S PRESENT OF 6 BILLION dollars TO UKRAINE?

Ukrainians want the government to answer two questions: (a) How much will Ukraine pay for Russian gas next year? (b) What will it have to give Russia in return?

Ekonomicheskiye izevstia, referring to reliable sources, informed the day before yesterday that Russia and Ukraine had agreed on a new price: 220-230 dollars per thousand cubic meters. Prime Minister Azarov at first declined comment on the talks. When asked by journalists, all he said was: “We’ll let you know after the talks.” However, that night, appearing on the First National Channel, he let the cat out of the bag, saying if all went well Ukraine would be able to save up to 500 million dollars every month due to the new gas price: “Once we agree on an acceptable gas price, Ukraine will have an immediate advantage, I mean 600 million dollars a month, or six billion a year.”

PARLIAMENT OFFERED TO WITHDRAW FROM GTS MANAGEMENT

There is still no answer to the second important question. What Ukraine will have to give Russia in return is anyone’s guess. There is a very small likelihood of Russia making Ukraine a present of six billion dollars a year. Experts believe that Ukraine will have to part with its gas pipeline. Several months ago Prime Minister Azarov said that Naftohaz’s reorganization could be a tangible argument in the gas price talks with Moscow. Also, when Russian gas started being pumped through Nord Stream, the Ukrainian parliament almost simultaneously registered a bill amending the law on pipeline transportation.

The Bill “On Changes to Certain Legislative Acts of Ukraine in Order to Secure Reforms in the Oil and Gas Complex” (No. 9429), registered with the Verkhovna Rada on November 8, bans privatization of government-run major pipeline transportation facilities. On the other hand, the bill envi­sages authorization of the Cabinet of Ministers to manage “basic assets that do not secure transportation using main and/or distribution pipe­lines, as well as underground storage facilities owned by Naftohaz, affiliate, and Naftohaz-founded facilities.” In other words, the Verkhovna Rada is offered to give up control over one of the key national assets, gas transportation system. Considering that the bill was worked out by the Cabinet of Ministers in accordance with the President‘s directive (September 2, 2011) about the need to reform Naftohaz, it is safe to assume that the VR will pass it. Yanuko­vych’s desire, gi-ven Cabinet format, is a powerful stimulus for the government-minded MPs. There is hardly much the opposition can do about this except raising a hue and cry in the media. NUNS press service informs that the faction will demand progress report on the new gas deal from the Cabinet during the debate on Friday.

Deputy Prime Minister and Mi-nister of Social Policy Serhii Tihipko hurried to declare that he knew nothing about the cost of the gas accords: “I have no information about any facilities; all I know is that the gas transportation system was on the agenda, but Ukraine’s stand in the matter remains the same: even if there are new owners, there must be three of them, Ukraine and Russia as the owner of the commodity being transported through our territory, and the European Union as the buyer,” he told Channel 5, adding, “If this is a bilateral agreement, it will not reconcile Ukraine with Russia and the organization won’t be transparent. I know nothing about the interest rate or guarantees for Russia.”