Azarov hoping Russia will not fine Kyiv for not taking gas

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Aug. 1, 2012, 4:56 p.m. | Business — by Interfax-Ukraine

Ukrainian Prime Minister Mykola Azarov


Ukrainian Prime Minister Mykola Azarov has expressed the hope that Russia will not levy fines upon Kyiv for not taking gas.

"We are working to reduce the negative balance of our balance of payments. With what? With maximum striving to avoid the acquisition of expensive Russian gas. You know, we have reduced gas consumption by ten billion cubic meters. And what is ten billion? It is four and a half billion dollars," Azarov said in an interview carried on the BBC's Ukrainian service.

Asked whether Russia would be imposing fines, Azarov said, "Well, let them go ahead. I think they won't. There are with Russia certain agreements and constant negotiations on reviewing the contract are underway."

"This is not the first year we are reducing gas purchases," the prime minister said.

Commenting on the situation surrounding the gas negotiations with Russia, Azarov said, "Well, here you say 'thank you' to the politician that concluded these contracts. She [former Prime Minister Yulia Tymoshenko] wrote it out so that Ukraine is without rights, that it does not have the right to get out of the agreement. Here is ten years - and, bless you, fulfill the existing contract. Only on Russia's initiative is it possible to review the contract. And it's not possible on our initiative."

"How can such an inequitable contract be signed with Russia? What kind of responsibility is needed for this? For this reason I want to emphasize that that we have no alternatives today," the prime minister said.

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Phill M Aug. 1, 2012, 10:03 p.m.    

So, Russia tells Ukraine it has to pay for the gas it uses. It tells Ukraine that this is the contract that it has to make. It tells Ukraine this is the amount of gas to has to use--no more, no less.

Ukraine uses less (a good thing, as it demonstrates Ukraine is learning to both reduce unnecessary consumption and diversify energy resources), and Russia says 'Sorry, we have to fine you. You did not use the gas we told you to use in the contract.'

Sadly, the history of contracts, love-and-hate, and fluctuating gas prices and the need to secure a gas supply agreement between Russia and Ukraine lead to a rather poorly thought out agreement for gas in the past.

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from eu Aug. 2, 2012, 1:07 a.m.    

and you cancel the sevastopol fleet deal and say them to leave ukraine in 2013 as agree in jushenko agreement

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