Ukraine is looking to Russia to solve its natural gas troubles, and hopes to rent out its gas pipeline system, but will not raise household gas prices, President Viktor Yanukovych said in a live televised program "Dialog with the Nation."
His statement
indicates that Ukraine is betting on a deal with Russia – its main supplier of
blue fuel – and is not prepared to meet conditions for a deal with the
International Monetary Fund.
Yanukovych said he hopes a new gas deal with Russia will be reached
within half a year.
He
complained that the current price for Russian gas is unacceptable: “The price
for gas we have is the highest in the world ($520-$530 for 1,000 cubic meters).
We are losing $500 million a month (on gas) and we front the losses to the
state, on Naftogaz Ukraine.”
At the same time, the president said Ukraine will not sell its gas pipeline
system to Russia in exchange for a gas discount but is considering renting the
pipeline system as a part of this deal.
“Most likely, we will not sell the pipelines to anyone,” said Yanukovych.
“Possibly, the pipelines will be rented out in a way that the rent covers the
upkeep of the gas transportation system… Our aim is to use our GTS effectively,”
Yanukovych said.
He said Ukraine is
seeking to share responsibility for the upkeep of the pipeline system, and
wants guarantees that a certain volume of gas transit will go through Ukraine’s
pipes.
“Our aim is not to
create a consortium, our aim is the optimal use of the working GTS,” he
said.
At the same time,
Yanukovych said Ukraine is not prepared to raise gas prices for the industry
and households, a key condition for receiving a new $15 billion lending program
with the IMF.
Its mission is
expected to resume negotiations in March.
He also criticized the
international community for not supporting Ukraine’s tough gas negotiations
with Russia. In January Russia’s Gazprom issued Ukraine a bill for $7 billion for
taking less gas than agreed under their gas supply contract.
“When we got a $7 billion bill from Russia, there
was no reaction (on behalf of the European Energy Community). We don’t feel the
effect we were counting on from our membership in European Energy Community,” Yanukovych
complained.
