Friday, March 14, 2008

Ukraine's Leader Points Out Drawback in Deal With Gazprom

City of Kiez
KIEV, March 14 (RIA Novosti) - Ukraine's president criticized on Friday a new natural gas deal with Russia, saying it gave Russian state gas giant Gazprom too high a quota for direct gas sales in Ukraine, his spokeswoman said.

At a meeting with his prime minister and the head of state oil and gas company Naftogaz, President Viktor Yushchenko said that although he broadly supported the deal, it had altered a key instruction he earlier issued.

The agreement guarantees Gazprom minimum annual gas sales in Ukraine of 7.5 billion cubic meters, rather than setting this figure as an upper limit, as Yushchenko had ordered, press secretary Irina Vannikova said.

"This detail needs to be clarified," she said.

Premier Yulia Tymoshenko and Naftogaz CEO Oleh Dubyna met with the president to discuss details of the agreement reached on Thursday between Gazprom and Naftogaz to end their long-running gas dispute.

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Hopefully this agreement will mend the relationship between Russia and Ukraine. If they can not decide on an agreement, then this could lead to more gas disputes throughout Europe, which could then lead to gas shortages and higher prices.
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