Tuesday, April 15, 2008

RUE stays, UGE goes, almost everyone happy

In a 15 minute interview on TV channel 1+1 yesterday, a rather tired-looking PM Tymoshenko revealed that RosUkrEnergo, at the insistence of the Russian authorities and Gazprom, will remain the monopolistic supplier of imported gas for a while after all, but: "RUE will not enter Ukraine - they will hand over gas to Ukrainian state gas company 'Naftohaz Ukrainy' on Russian territory."

'Gazeta.ru', in an article entitled "RosUkrEnergo forever", today explains that this arrangement probably suits everyone right now, except for Viktor Yushchenko - his sponsor, Ukrainian businessman Dmytro Firtash, will lose a major part of his 'cut' from RUE. Here are several portions of the article:

"The preservation of RUE is an obvious concession by Ukraine; Tymoshenko repeatedly spoke of the intention to completely eliminate intermediaries fron the gas supply chain. But the elimination of [secondary intermediary] 'UkrHazEnerho' is a victory for the prime-minister, and has ensured the bulk of industrial gas deliveries in Ukraine are via 'Naftohaz', which is overseen by her protege Oleh Dubina.

The present situation, according to political scientist Dmitriy Abzalov, suits everyone. Gazprom retains the intermediary and has also received a significant portion of the Ukrainian market, i.e. 7.5 Bcm of gas p.a.

"Presently RUE directs a portion of gas to Europe at European prices, and the profit made allows it to subsidize Ukraine, supplying gas at a reduced price. Without the intermediary, this will not occur, " said Abzalov.

But the victim will be Ukrainian businessman Dmitry Firtash, who received most of his income from the activities of UkrHazEnerho.

"Having eliminated this company [RUE], Tymoshenko has killed two birds with one stone: she has diverted the lion's share of supply of gas to Naftohaz Ukrainy, and has knocked away financial support from under her main political rival, Viktor Yushchenko," says Abzalov.

Firtash is linked to Yushchenko, as evidenced by the fact that Firtash has a joint account with the wife of the Ukrainian president in one of the banks. Firtash was until recently the main financial resource for Yushchenko. Now, according to the political scientist, financial problems have sprung up for the businessman, and correspondingly, the position of the Ukrainian president has been weakened. "I believe, that the question of the final elimination of RUE will put on 'the back burner' by Tymoshenko, it is not convenient for her the remove the intermediary right now," considers Abzalov."

p.s. NUNS leader Vyacheslav Kyrylenko declared tonight, after a meeting with coalition partners, that the fate of the democratic coalition will be saved, if on Tuesday, the BYuT fraction in the VR does not vote with PoR and the Communists in favour of the project to create a temporary special commission on introduction of changes to the Constitution.

Could be trouble ahead..


elmer said...

"Firtash has a joint account with the wife of the Ukrainian president in one of the banks"

Hold on a cotton' pickin' minute, there.

This is a joint account with the same president of Ukraine who said, in a very notable Easter speech, that "corruption is killing Ukraine?"

The same president whose wife once held a post in US President Ronald Reagan's administration in the US?????

The same president whose wife and family got jet rides from Firtash to Brussels and other places from Firtash jets?

The same Firtash who testified in his London divorce case that he has both Ukrainian and Israeli citizenship, which is against the law in Ukraine, and for which then-Interior Minister Tsushko conducted a Gestapo raid on Yuriy (George) Lutsenko at 6 a.m. in the morning because there were "allegations" that Lutsenko had an Israeli passport?

The same Firtash who is tied in with the 5 foot 6 inch human 295-pound bowling ball, Simeon Mogyilevych, who was just arrested in Maskva by the rooshans, because he was indirectly tied in with Gazprom through his Jewish connections with Firtash?




hans said...

Would that there's an easy way out of the seemingly perpetual constitutional crises, a seriously hamstringing issue. Preferably one that doesn't involve each politician looking ahead to the next election, gaging the best way to increase his or her influence.


“Today, unfortunately, we have three governments but not one: Cabinet of Ministers, NSDC, Presidential Secretariat. As practically all executive functions have two or three commissions which contradict to each other,” Yulia Tymoshenko noted. According to her, today we must proceed to making conscious and coordinated changes to the Constitution strengthening the democratic coalition at that.

“If we fail to do it – the power will be shaken irrespective of the fact who will be in control and who in opposition,” the Prime Minister of Ukraine thinks.

Moreover, Yulia Tymoshenko disproved reproaches on her allegedly disrespectful expressions addressed to the President. “I am always supportive to the President, strengthening his power and our team will never swerve from the configuration of democratic coalition,” she said.

Sounds good, but true motivations don't always match spoken words, yeah?

Anonymous said...

Doesn't sound like this journalist knows what he's talking about. For a start it seems much more likely that RUE makes most of its profits from selling Asian gas onto Europe at European prices and not in the Ukraine market, even the industiral one where the price is limited. Secondly he forgets to mention that Natfogas is not getting all the gas - there's Gazprom that's entering the market instead. Thirdly why would the Pres' wife have a joint account with Flirtash and how would the journalist know about it anyhow?

Anonymous said...

I guess the beans are out of the bag on this one, confirms that Tymoshenko is only concerned with her future political career rather than the good of the Ukrainian State. Shame, shame, Shame on Her.