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February 3, 2006

Ukraine PM: Crisis is result of Russia's refusal to pursue 'objective dialogue'

Exclusive interview with Ukrainian Prime Minister on the recent Ukrainian-Russian natural gas dispute reveals tension

Washington, D.C. – In an exclusive interview, Ukrainian Prime Minister Yuri Yekhanurov sounds off about Ukraine’s relations with Russia and its future in the latest issue of the World Security Institute’s Washington ProFile.

The Washington ProFile interview reveals Yekhanurov’s account of the unsatisfactory negotiation process regarding the recent Ukrainian-Russian gas affair, which the Prime Minister characterizes as not being productive or objective. “We were prepared to embark on a far-reaching dialogue,” Yehanurov said about entering discussions with Russia. “[Instead] we were told directly to forget about existing agreements, accept an instantaneous, almost fivefold increase in gas prices, say ‘thank you’, and get along with our business,” Yekhanurov told the Washington ProFile.

The current gas crisis between Russia and Ukraine started when the Russian Gazprom energy giant increased the prices on gas supplies to Ukraine. When the latter refused to pay the new price, Russia closed the taps. This is when Ukraine, which its government later officially admitted, diverted gas from Russia’s European supplies to satisfy its domestic needs. The compromise deal on new price policy and supply quantities was signed on Jan. 4, 2006. On Feb. 3, Russia and Ukraine set up a joint venture,UkrGazEnergo, to sell natural gas from Russia and Central Asia to Ukraine. The new joint venture will sell Russian and Central Asian gas to Ukraine at a price nearly double that which Kiev had previously paid for its gas imports, but the price is much lower than the $230 per 1,000 cubic meters that Russia had been demanding.

For the complete interview of Prime Minister Yekhanurov visit: www.washprofile.org

About the Washington ProFile: The Washington ProFile is a Russian-language information agency of the International Media Division of the World Security Institute. The bi-weekly Washington ProFile provides news and analysis about the United States to readers in the Russian-reading Diaspora worldwide.

To learn more about the Washington ProFile visit: www.washprofile.org