Khoroshkovsky: Ukraine may lose case on Russian gas contracts if it appeals to international arbitration court

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Mar. 24, 2012 11:56
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Valeriy Khoroshkovsky, Ukraine's First Deputy Prime Minister and Finance Minister
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Ukrainian First Deputy Prime Minister Valeriy Khoroshkovsky has said that Ukraine, if it appeals to an international arbitration court regarding the unfairness of gas contracts with Russia, may lose the case.
"If a primary legal analysis tells you about it, then it's probably stupid to appeal [to court] and lose [the case]. We know perfectly well what will happen. We analyzed all situations," he said on the Shuster Live program late on Friday, when asked when Ukraine will turn to an international arbitration court over the gas contracts.

He added that a"high and unfair price stimulates energy saving, the adoption of a tough position, and the competitiveness of our products."

Khoroshkovsky said that Ukraine still relies on a fair gas price. And the only way that can currently protect Ukraine from a disadvantageous contract is to reduce the amount of gas imports and switch to its own coal, while reducing gas consumption, he said.

"Although this is a partial violation of the 'take or pay' principle, but in this case it's a lesser violation," Khoroshkovsky said.

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