Gary,
This is the Ukrainian Priome Minister's interview and the facts are cooborated by others:
A tough one to lose for Putie
PS - why isn't he going for arbitration as the contract specifies? Maybe he does not have a case?
That's why he has to rattle his saber like a fool.
---
Mirror Weekly interviewed PM Yekhanurov.
Excerpts
Now the main thing. Will there be gas in Ukraine since January 1, 2006?
- I believe that the contract will be carried out and the gas will be supplied. But… we will still be conducting nervous negotiations.
- You mean the gas will be supplied despite the unfinished bargaining?
- As a matter of fact there is a contract between Naftogas of Ukraine and Gasprom of Russia on volume and conditions of transit of Russian natural gas through the territory of Ukraine for the period between 2003 and 2013. It is currently in effect. I cannot imagine how a public company bound by contract obligations can refuse to fulfill them. I asked the deputy head of Gasprom, Oleksandr Riazanov, during our negotiations in Moscow on December 19 in the presence of the head of the Russian Cabinet Mikhail Fradkov: “Is the contract effective?” And he said: “Yes.”
- Then why do the Russians say that they will stop contract supplies of gas to Ukraine on January 1, 2006?
- One can always find a reason to make a statement. But in article 14 of this contract it is clearly stated that: “This contract comes in effect on January 1, 2003… It remains effective until 10 am on January 1, 2014.” And one more thing: “During the period between 2005 and 2009 the Customer (Gasprom) will sell annually natural gas at the price of 50 US dollars for 1000 cubic meters, which is not subject to change by the parties, from the gas transportation services of Russian natural gas through the territory of Ukraine to ensure the gas balance of Ukraine.”
- What do you think of possible arbitration with Gasprom?
- “Any disputes about these contract or as a result of it are subject to examination and final settlement in the Arbitration Institution of the Chamber of Commerce in the city of Stockholm.” (This is Article 12 of the contract). I am not afraid of possible arbitration. Ukraine has already had a positive experience of arbitration. So if we have to appeal, we know what to do and where to go.