Conversation between President Medvedev and Gazprom CEO
PRESIDENT OF RUSSIA DMITRY MEDVEDEV: Alexey Borisovich, you were in Brussels yesterday where you participated in difficult negotiations with Gazprom's colleagues from the EU and Ukraine. What were the results of these negotiations?
CHAIRMAN OF GAZPROM'S MANAGEMENT COMMITTEE ALEXEY MILLER: All day yesterday we held consultations on the establishment of an independent mechanism to oversee the transit of Russian gas through Ukrainian territory. Gazprom sent a letter of invitation to European companies that buy Russian gas in Europe, and ten companies have already confirmed their support for such an independent international committee. Today this protocol will be signed.
For its part the European Commission has understood the need to establish such a mechanism. The main obstacle, and the reason which the European Commission did not sign the protocol on the establishment of an international committee yesterday, is its lack of a mandate from EU member countries to do so. We believe that very soon, perhaps even today, such a mandate will be given. And in light of the fact that the situation regarding the supply of Russian gas to several European countries is critical, we are confident that an independent monitoring mechanism could be established within a few hours. At yesterday's meeting the Ukrainian party adopted a destructive position and refused to sign a protocol on establishing an international committee; in practice they missed a real chance to renew the transit of Russian gas to European countries yesterday.
DMITRY MEDVEDEV: The day before yesterday I spoke with the Ukrainian President and set out the six conditions under which Russia and Gazprom, a major company, would be willing to work with Ukraine. These include the creation of the monitoring mechanism you referred to. This idea was supported by European leaders and individuals. I would now like to see how ready Ukrainian contractors are to establish such a monitoring system and determine who should participate in it. I believe that it cannot contain only representatives from Russia and Ukraine. There should also be representatives from companies that use Russian gas. There must be competent and qualified observers from the European Union. Not just bystanders who came to Ukraine in order to sit around a good table, but rather those who will work with real equipment and who will have access to all the technological aspects of this situation. Including the underground storage of gas. Otherwise we will never be able to make this situation public. And this is our goal: to show who is actually involved in stealing gas. What is the position of the Ukrainian party on this issue?
ALEXEY MILLER: To put it mildly, it seems that the Ukrainian side is afraid of such a mechanism. Because we are well aware that the theft of Russian gas did not begin yesterday; the practice has been ongoing for many years now and our Ukrainian colleagues have benefited from this. I think that if such a mechanism is set up then our Ukrainian colleagues will have to work honestly and transparently. It seems that they are not very willing to do so.
The committee will include representatives of countries and companies that are consumers of Russian gas. Members include Gazprom, of course, as a supplier of gas, the Ministry of Energy of Russia, the Ministry of Energy of Ukraine, and National Joint Stock Company Naftogaz of Ukraine, as well as experts from the European Commission. In addition, and as you said Dmitry Anatolyevich, it will include international legal companies which will ensure and support the interests of Gazprom and Naftogaz of Ukraine in this dispute.
DMITRY MEDVEDEV: This must be closely monitored, bearing in mind that this type of theft cannot but have consequences. And in the future I think that we should use this as a base for a series of compensation claims for losses incurred both by Russia and by European consumers of gas. And for that we need the authorized representatives of law firms those who can, of course, record the actual numbers. Another very important point: has the Ukrainian party put forward any suggestions for future agreements on gas supplies to Ukraine?
ALEXEY MILLER: There has been no progress in negotiations with our Ukrainian colleagues on the delivery of gas to Ukraine. The talks have resumed but it seems that Ukrainian negotiators have no mandate and no authority with regards to the level of prices in 2009 and the volume of gas purchases. Negotiations are virtually useless. We see no willingness on the part of Ukrainian negotiators to sign a contract.
DMITRY MEDVEDEV: And do they have instructions on this topic? Did they talk about this?
ALEXEY MILLER: It seems that they do have instructions but that these are very general in nature – they are clearly not enough to allow the negotiating groups to sign a contract with Gazprom.
DMITRY MEDVEDEV: This simply proves what we have been saying in recent times. It is evidence of a problem within Ukraine's political system. It reveals a lot about the state of today's political situation, how decisions are taken, who is responsible for these decisions, and it also tells us about people's motivations for making such decisions.
