The FINANCIAL — Bohdan Solkolovskyi, the envoy of the president of Ukraine for the international questions of energy security, has scolded the Cabinet of Ministers for protracting negotiations with the European Commission and international financial institutions on credits for Ukraine to purchase natural gas into the underground gas storage facilities.
He gave his opinion at a new briefing.
"The official position of the Ukrainian government… has not satisfied the European Commission. It has not satisfied the international financial institute either… Consciously or unconsciously, the government is protracting the negotiations," said the envoy of the president for the international questions of energy security.
According to Sokolovskyi, the European Commission's conditions include raising gas rates to the economically justified level and measures against cross subsidizing.
At the same time, the European Commission proposes to realize the said conditions gradually, so as to avoid dramatic growth in the gas rates for the Ukrainian population.
According to Solkolovskyi, President Viktor Yuschenko will insist on preservation of targeted subsidies to the poorer strata of the population.
The envoy of the president expressed his concerns that the protraction of the negotiations with the European Commission can be a result of secret talks between the Cabinet of Ministers and foreign companies on gas credits.
According to him, the government is willing to raise USD 4-5 billion for these purposes, whereas European experts have estimated that a credit of USD 1.6-2 billion will be enough.
President Viktor Yuschenko insists on holding all negotiations openly and transparently, the envoy said.
The envoy of the president also expressed his concerns that the loan agreements with separate companies can lead to the bankruptcy of the Naftohaz Ukrainy national oil and gas company to virtual transfer of the management over Naftohaz Ukrainy to other countries.
Bohdan Solkolovskyi said the Russian Troika Dialogue could be among companies the Cabinet of Ministers is in loan talks with.
As Ukrainian News earlier reported, the Cabinet of Ministers recommends the National Electricity Regulation Commission to bring the natural gas rates for the population to the economically founded level from October 1, 2009.
The Cabinet of Ministers has committed in a memo with the International Monetary Fund to have natural gas rates for the population and municipal heating companies increased by the end of 2009 and introduce quarterly correction of the natural gas rates for the said categories from 2010.
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