09.10.02

Ukraine Plans To Finalize Agreement On Creation Of International Gas Transport Consortium By 30 August 2003

Ukraine is planning to finalize the agreement signed in Kishinev on the creation of an International consortium for management of its gas transport system by 30 August 2003.

The Minister of fuel and energy, Vitaly Gaiduk, made the disclosure, while delivering to parliament an address with information on the reforming process of the fuel and energy complex.

“Estimates and the technical, as well as economic basis of creation of the consortium will be prepared by 30 August 2003,” Gaiduk said.

Gaiduk noted that before this time the gas transport system of Ukraine will not change its status.

Responding to questions of deputies, Gaiduk refuted the information concerning possible losses to be accrued by the budget in connection with the entering of the company Neftegaz Ukrainy into the consortium.

Gaiduk added that the planned revenues from Neftegaz Ukrainy in 2003 will not be reversed.

At the same time, Gaiduk said that in connection with the creation of the consortium, Ukraine will be expected to abolish the rent payments, which are been paid by Neftegaz Ukrainy.

“Ukrainian legislation does not contemplate payment of renting fees,” Gaiduk said.

The chairman of parliament’s committee for the fuel and energy complex, nuclear policy and nuclear safety, Andrei Kliuev, gave his support to the minister.

“In as much as the technical and economic basis will not be prepared, we cannot say anything concrete with you,” Kliuev said.

Kliuev added that the parliamentary committee for the fuel and energy complex will demand of the government to submit for ratification the agreement on creation of the consortium.

As Ukrainian News previously reported, on Monday the Prime Minister of Ukraine, Anatoly Knakh and the Prime Minister of Russia, Mikhail Kasyanov, signed in Kishinev an agreement on strategic partnership in the gas sphere.

Ukraine and Russia created the International consortium for management and development of the gas transport system of Ukraine, the agreement on the creation of which was signed by the head of Neftegaz Ukrainy, Yury Boiko and the CEO of the Russian company Gazprom, Aleksei Miller.

In June, President Leonid Kuchma and the President of the Russian Federation, Vladimir Putin agreed on joint management by Ukraine and Russian of the Ukrainian gas transport system.

In September, the Auditing chamber accused the state-owned company Neftegaz Ukrainy of evading taxes in the amount of UAH 129.4 million from the UAH 132.6 million that in effect comprises 97.6% of the taxes, which were envisaged by the 2002 budget within the period January-June.