BELGIUM: Ukraine PM pledges gas supply to Europe. Talks on NATO and WTO

Ukraine pledged to have enough gas in storage this winter to avoid any repeat of the disruption caused last January by a dispute between Kiev and Moscow. In an exclusive interview with Reuters Television Ukraine's prime minister Viktor Yanukovich said in Brussels on Thursday (September 21) said his country's cooperation with Russia would ensure a stable supply. "I also want to underline that our cooperation with Russia regarding gas supplies also includes the issue of stable and continuous gas supply to Europe," Yanukovich said The prime minister will travel to Moscow on Friday (September 22) for talks on gas. He explained Ukraine's reserves were large enough to supply Europe. The flow of Russian gas through Ukraine to western Europe was disrupted last January when Moscow cut off supplies to the former Soviet republic in a dispute over pricing. Ukraine had some 21 billion cubic metres of gas in storage as of September 5. Aides travelling with Yanukovich said it would reach the level that he specified by mid-October. "These questions are not only important for Ukraine but for the whole of Europe. Ukraine must have the proper amount of gas to cover the entire winter period. We have practically taken care of this and the government, from the start, has been dealing with it to ensure proper supplies of gas for ukraine.. we will provide the necessary 24.7 billion cubic metres," he said. The temporary disruption of gas supplies, which Moscow at the time blamed on Kiev, triggered concerns in Europe about the reliability of Russia as an energy partner and calls for the continent to seek alternative energy sources. Yanukovich's visit to Russia comes as Kiev and Moscow must reach agreement on gas deliveries to Ukraine for 2007. Ukraine is under pressure to limit the potential fall-out on its economy by keeping as low as possible the price increase that Russia is expected to demand. Yanukovich did not comment on what outcome he expected from negotiations but reiterated that Ukraine's 2007 budget was based on a figure of 130 US dollars per 1,000 cubic metres. Ukraine currently pays around 95 US dollars per 1,000 cubic metres. The prime minister said joining the WTO and creating a free trade zone with the European Union was a government priority. Last Wednesday (September 13), Ukraine won the promise of negotiations early next year on broader ties with the European Union that could include a free trade deal. But the E.U. also said last week the 25-nation bloc at this time has no plans to offer Kiev membership, and instead suggested the two negotiate a so-called enhanced agreement that would include a free trade pact - but only after Kiev joins the WTO. "The issue of accession to WTO is the priority for our government and it was a priority from the very first day. So the actions were already taken and there are still 2 protocols that remain to be signed between Kyrgyzstan and Taiwan. Secondly 21 drafts of the law need to be introduced to parliament and receive its support. We already have the support of the coalition here. And there is the issue of protecting the interests of domestic producers in order for them not to suffer as a result of the WTO accession. We will work intensely on that and hope this will be done by the end of the year. Further steps we are looking at are to create a free economic zone, a commercial trade zone with Europe, with the European Union, which will also lead us closer to WTO accession," Yanukovich said. The Prime Minister last week said the issue of NATO membership was on pause due to Ukrainians general disapproval. He repeated on Thursday that Ukraine would launch an information campaign to persuade the people that it was in their best interest to join NATO. This method was apparently quite successful in Lithuania "Our position is always dependent on the parliament. Parliament has to listen to public opinion and base itself on that. So social surveys showed NATO membership is too early for Ukrainians. This is why our action plan for membership of NATO are still in the pipeline. We have to carry out a widespread information campaign. For the first time in the history of the government of Ukraine we allocated money from the state budget to carry out this information campaign," Yanukovich said. The Kiev parliament lined up behind Yanukovich on Tuesday (September 19) in a looming foreign policy battle with President Viktor Yushchenko. It praised the premier for putting the brakes on fast-track NATO membership. Yushchenko upbraided the prime minister, his long-standing political rival, on his return to Ukraine, saying his stand was mistaken and ran counter to national interests. Other officials said Yanukovich had overstepped his policy brief in new, tricky relationships set down in constitutional changes reducing the president's powers and extending those of the prime minister and parliament. Parliament, where Yanukovich heads a government made up of parties largely hostile to the president, passed a resolution supporting the prime minister's stand. Approved by 242 members, it said steps towards NATO "must take account of the will of the Ukrainian people". But the declaration was largely symbolic, setting down established positions of the premier's backers in the 450-seat assembly.

ITN Source | September 21, 2006

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