#44 - JRL 2008-36 - JRL Home
Russian, Ukrainian PMs set to talk oil and aviation,
not gas
MOSCOW, February 20 (RIA Novosti) - Talks on the oil and aviation sectors are
on the agenda of Wednesday's meeting between the prime ministers of Russia and
Ukraine, a Russian government source has said.
Russian Prime Minister Viktor Zubkov and his Ukrainian counterpart Yulia
Tymoshenko are not, however, expected to discuss natural gas deliveries - an
issue that hit the headlines last week when Russia threatened to turn off gas
supplies to its neighbor over unpaid debts.
The government source said Zubkov and Tymoshenko were set to discuss the
Odessa-Brody oil pipeline, running from Ukraine's Black Sea coast to Brody, near
the Polish border.
The project was initially set to pump Caspian oil to Central Europe, but has
instead been used "in reverse mode" since 2004 to transport Russian crude south
to the Mediterranean.
"We are interested in the implementation of all the domestic obligations
undertaken by Ukraine according to the oil transportation agreement signed in
August 2004," the source said.
The representative explained that pumping oil in the reverse direction was
profitable for Ukraine, which received $60 million in payment for the
transportation of Russian crude last year.
Around 2 million metric tons of oil (15 million bbl) was pumped along the
pipeline in 2004 and some 10 million (73 million bbl) in 2007.
The Russian side is also expected to put forward for discussion joint
projects in the production of aircraft, as well as helicopter and aircraft
engines and components, envisioned in a plan valid until 2009 and signed by the
countries' respective presidents.
However, the source denied that the two premiers would discuss natural gas
deliveries to Ukraine during the meeting.
"We deliberately keep this issue from being discussed at an intergovernmental
level," the source said, adding that all the differences between the two former
Soviet republics over the gas issue had been discussed by the countries'
presidents on February 12, and that Russian natural gas monopoly Gazprom and
Ukraine's state-run Naftogaz had reached a deal on a new scheme of deliveries.
Russian President Vladimir Putin and his Ukrainian counterpart Viktor
Yushchenko agreed on a roadmap to settle Ukraine's $1.5 billion debt for Russian
gas supplies during the last ditch meeting on February 12. An agreement was also
reached to establish direct fuel supplies between Gazprom and Naftogaz.
The Cabinet source also said Zubkov and Tymoshenko were expected to fix the
date for a meeting of the Russian-Ukrainian economic cooperation committee,
delayed over political developments in Kiev in the wake of parliamentary
elections.
Speaking on bilateral trade, the source said the current situation was
dynamic. Trade turnover between the countries increased 22% to just under $30
billion in 2007. Imports from Ukraine expanded almost 40%, mostly due to
foodstuffs and agricultural products, while Russian exports grew 9% in the same
period.
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