Dmitry Medvedev: “I am adopting a decision to cancel Resolution No. 291 of 30 April 2010. This decision has direct and immediate consequences for Gazprom’s relations with our Ukrainian partners and consumers. You should be guided by the generally established rates of export customs duties on gas without any discounts or preferences.”
Transcript:
With Gazprom CEO Alexei Miller
Dmitry Medvedev: Mr Miller, let’s start with some information. As you know, the Security Council has discussed the future of the so-called Kharkov agreements.
Following this discussion, the President issued an instruction on considering the denunciation of the said international treaties signed in 2010. The State Duma reviewed this issue and abrogated the treaties upon considering the changes in the circumstances that had led to their conclusion.
The President has signed a relevant law on the said international treaties. Earlier the Government adopted a separate document (on 30 April 2010) with a view toward implementing these international accords. It established zero export customs duties on gas supplies from the Russian Federation. However, now that the international legal grounds for these accords have ceased to exist and the accords have been cancelled, I’m also adopting a decision to cancel Resolution No. 291 of 30 April 2010. This decision has direct and immediate consequences for Gazprom’s relations with our Ukrainian partners and consumers. You should be guided by the generally established rates of export customs duties on gas without any discounts or preferences. You should take this decision into account when it comes to further mutual settlements with Ukrainian consumers.
At the same time I’d like to draw your attention to the issue of compensations. Let me recall that the adoption of these decisions in the wake of the aforementioned international accords allowed Ukraine to receive a certain benefit immediately after signing these international documents and agreements with Gazprom.
As a result, the Russian Federation did not receive part of its revenues from export customs duties on gas. Moreover, it didn’t receive them in the context of the Kharkov accords, which extended the stay of the Russian naval base on what was then Ukrainian territory. Therefore, we are now reviewing an opportunity to use certain compensation mechanisms. I’ve issued an instruction to charge the revenues that the Russian budget has failed to receive, according to the established procedure. I’m simply informing you about this so that you may take it into account in your relations with Ukrainian consumers.
What is the status of gas supplies to Ukraine in general? They owed us a lot of money. Have there been any changes in this as of late?
Alexei Miller: In March, we supplied Ukraine with 1.956 billion cubic metres of gas and have not received any payments from it for the March supplies. Ukraine’s debt to us has exceeded $2.2 billion. Let’s hope that Ukraine will start paying off its debts in the near future and will pay for the current supplies, although we see that the situation is not improving, but is only worsening.
Mr Medvedev, the signing of the resolution cancelling customs benefits for gas supplies to Ukraine means that under the current contract on gas supplies, signed in 2009, the price for gas will increase to $485 for one thousand cubic metres starting in April.
Dmitry Medvedev: Let our Ukrainian partners find the funds to pay off their debts and pay for current deliveries, because otherwise cooperation in this or other spheres cannot continue. Everyone should realize this, including the current decision-makers in Ukraine.
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