PM: Ukraine to formalize gas deal with Russia, never cede pipeline control
(AP)
Updated: 2006-01-13 14:55

Ukrainian Prime Minister Yuriy Yekhanurov said Thursday that his government would formalize a gas agreement with Russia despite the political crisis that the deal set off, but vowed the state would never give up control of its pipeline network.

In an interview with The Associated Press, Yekhanurov aimed to lay to rest two widespread fears for Ukrainians: That the country's energy supplies could be thrown into limbo by the political crisis, and that Ukraine would be forced to use its pipelines as assets in a new joint Russian-Ukrainian company that will be bringing in the nation's gas imports.

"The gas transport system cannot be privatized or transferred for management, and this is the principled position of the Ukrainian government," Yekhanurov told the AP.

Earlier this week, parliament voted to sack Yekhanurov and his Cabinet over the deal with Russia's state-controlled gas monopoly, which resulted in nearly doubling the price of imported natural gas for Ukraine, but the government has called the legislature's move illegal.

The effects of the parliament's vote were not clear because Ukraine is in the process of implementing constitutional changes that would allow the parliament to fire the government; previously, that power was held by the president. The changes have so far been enacted only partially, and many experts said that while technically the legislature could now dismiss the Cabinet, it could not appoint a new one.

Government officials say, and some opposition politicians acknowledge, that the intent of the parliament's vote was to paralyze the government in the run-up to March parliamentary elections.

Experts also had expressed concern that if the Cabinet becomes immobilized by the crisis, the gas deal could be postponed until a new government is appointed following the March vote.

But Yekhanurov vowed that the agreement with Russia, formalizing the deal struck between the two countries' gas companies, would be signed by early February.

The deal, which was concluded last week, also called for forming a joint-stock company to be responsible for providing Ukraine with imported gas.

According to the deal, Ukraine's contribution to the company should be money and "other assets," and many Ukrainians feared their country would be forced to cede control over its gas pipelines _ a strategic asset used to carry Russian gas to European markets. Yekhanurov denied that.

Yekhanurov said the sacking of his Cabinet had no legal authority, and dismissed it as part of the opposition's election campaigning.

"It was a political decision _ elections are ahead, and many political forces decided to consolidate and thought that this way that could weaken (President) Viktor Yushchenko's team."

Yekhanurov lamented that the vote was backed by the bloc of Yulia Tymoshenko, his predecessor as premier and a former ally of Yushchenko. He called that "a direct betrayal of national interests."

He predicted Tymoshenko's adherents would only lose out from the political crisis, having compromised themselves by siding with politicians who had been their bitter rivals in the tumultuous 2004 presidential elections that Yushchenko eventually won after massive protests against vote fraud.

Tymoshenko "will not be forgiven _ patriots will give a proper evaluation to her actions," Yekhanurov said.

Tymoshenko's party, however, has vowed to seek annulment of the gas deal. Bloc member Valeriy Chegrov called it "treason against Ukraine's national security."