Point of View

"About Ukraine's plans to raise transit fees, and how Gazprom will react if it does: Ukraine will raise the fees as stipulated in the contract signed early this year. We agreed from the start and informed the public in both countries that for 2009 Ukraine left last year's transit fees unchanged, while Russia offered a 20% discount relative to the European price. Next year, there will be no discount, and no cheap transit. Transit fees will in fact rise by a bigger margin than the Russian supplies price. Russia will pay 60% more for shipping its gas to Europe across Ukraine. We know that; we have agreed to it consciously."

"What do we have to do to avoid a similar situation next year? We decided today that, despite the earlier agreements on purchase volumes, Gazprom and Naftogaz will adjust the amount for next year. No extra gas in the contract, no sanctions. This is a very simple decision, which suits everyone and does not violate existing contracts."

"As expected, we discussed cooperation in the gas sphere. Our countries have an effective interaction mechanism and practical agreements and contracts in this sphere. Strict compliance with them will ensure stable and uninterrupted work of the gas transportation systems of both Russia and Ukraine."

"Our Ukrainian colleagues have repeatedly voiced concerns over the penalties for failure to purchase the agreed amounts of gas under take-or-pay contracts. <…>.We all understand that natural gas consumption has shrunk as both Ukrainian and Russian economies contracted due to the global recession. Therefore, considering the special relations between Russia and Ukraine, between Gazprom and Naftogaz, we decided not to impose these penalties. Let me repeat this publicly - no sanctions will be applied."

"Our Ukrainian partners will receive gas for domestic consumption if they pay for it, and will get none if they don't. If they don't pay, they will most probably pump gas out of the export pipeline, reducing supplies as soon as they start. So, in reality we are the wrong people to address questions about the reliability of gas supplies. Ukraine can afford gas payments presently, as the International Monetary Fund has confirmed. A presidential race is ongoing in Ukraine to add to its problems. As you know, the President and the Prime Minister represent mutually contending forces in the pre-election campaign, and each has his own domestic political interests. As I see it, we should, without interfering in Ukraine's domestic politics, promote its compliance with international obligations, including those that concern gas transit to Europe."

"What might follow in compliance with the available contracts? Gazprom has the right to demand advance payments after even a single postponed instalment. Gas supplies will stop as soon as Ukraine refuses to pay in advance. Gazprom will supply only the amount paid for in advance-but, mind you, Ukraine will not survive without gas in its underground storages. It will have to pump gas out of the export pipe, and it cannot be blamed. It has no other way out."

"We have addressed the European Commission, as I said before. The Commissioner for Finance says there is no money for Ukraine. Still, Ukraine shares the problem with Russia because normal supplies to Ukrainian consumers are an essential condition for transits to Europe as we saw during the crisis at the beginning of this year. We all should realise it and bear our share of responsibility. No one should pretend that it does not concern him. Russia is ready to contribute to the settlement of this issue-but only contribute to it, not bear the entire burden. What this contribution should be will be determined in the course of negotiations."

"Payments are an important issue, certainly. It is hard to afford such a sum during a crisis. We know that. We have discussed the possibility of payments going towards future Russian gas transits to European consumers via Ukraine. It is a long-term matter, up to five years. Certainly, Russia is running great risks with the upcoming presidential election and everything pertaining to tentative reorganisation of Ukrainian gas transportation structures. We can only regret about new predicaments: As we have found out recently, President Yushchenko considers this payment system inadmissible and verging on illegality. I call the two countries' public to take note of that because it is hardly possible to settle whatever problems in such conditions-let alone problems involving such great risks."

"Approximately 15 billion cubic metres of gas is taken from underground storages in a year. Gas for Ukrainian domestic consumers is also taken from the pipeline using a sophisticated technology. I repeat, the Ukrainian economy will not keep afloat without gas from underground storages-which means it must be pumped in immediately because it will be impossible technologically to pump it in later. The necessary amount costs roughly $5 billion-$4.7 or 4.8 billion, to be more precise."

"We are the main and only supplier of gas through the Ukrainian pipeline system. When we see that the possibility of modernisation involving increasing capacity by 60 billion cubic metres is being considered, and no one is talking to us about it, then, the logical question arises, where the gas going to come from? This is the natural question that comes to mind. We suggest that we need to at least hold precursory discussions on this. At preliminary consultations, and at today's council meeting we discussed this issue in detail, and we have decided that the participation of the Russian side is, nevertheless possible in some form or another. And that fully corresponds to Ukrainian national interests. "