Ukraine's PM Tymoshenko calls gas deal with Russia a 'victory'
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Tennyson [2011-05-20]
Ukraine's Prime Minister Yulia Tymoshenko Wednesday called the deal struck with Russia Tuesday over gas supplies to Ukraine a "victory," after the two sides agreed to remove intermediaries from the gas supply chain.
"I think this is a great victory for the democratic team," Tymoshenko told a cabinet meeting Wednesday in comments posted on the government's website.
"This is another step toward establishing order in the gas market," she said.
The deal agreed Tuesday following talks between Russian President Vladimir Putin and his Ukrainian counterpart Viktor Yushchenko in Moscow, provided for the creation of a new entity that will be owned 50% by Gazprom and 50% by Naftogaz Ukrayiny to replace gas trader RosUkrEnergo as the sole supplier of gas to Ukraine.
RosUkrEnergo, jointly owned by Gazprom and two Ukrainian businessmen, has been exclusively supplying Ukraine with gas from Central Asian sources since the start of 2006.
The new arrangements will also see the creation of a second joint venture to provide gas sales on the Ukrainian domestic market, replacing UkrGazEnergo, a joint venture between Naftogaz and RosUkrEnergo.
Tymoshenko, since becoming prime minister for the second time late last year, has been pushing hard to replace RosUkrEnergo and UkrGazEnergo in favor of more transparent arrangements.
"Gas from Gazprom will come directly to Naftogaz," Oleh Dubyna, the head of Naftogaz, said in an interview with Ukraine's Channel 5 Tuesday.
Dubyna said RosUkrEnergo will for now keep supplying gas to Ukraine until the new entity is created, but he refused to disclose any timeframe.
"I can't say for how long. We will discuss this with Gazprom and with the [Ukraine] government." Dubyna said.