Ukraine says to talk gas and WTO with Russia

May 25, 2008 - 0:0

MINSK (Reuters) - Ukraine said on Friday it would hold talks on Russian natural gas supplies with Moscow simultaneously with negotiations on Russia’s membership in the World Trade Organisation.

“I believe that simultaneously with preparing a strategic agreement on Russian gas supplies to Ukraine ... there will be negotiations on the Russian Federation’s accession to the WTO,” Ukrainian Prime Minister Yulia Tymoshenko told journalists after meeting her Russian counterpart Vladimir Putin.
Ukraine depends heavily on Russian natural gas supplies and it also transits the bulk of Russian gas exports to Europe which account for a quota of European Union needs.
Moscow and Kiev have had repeated gas pricing disputes which once led to the interruption of Russian exports to Europe, sending jitters to both EU politicians and industrial producers.
Russia remains the biggest economy still outside the WTO. Its neighbour Ukraine ratified a protocol of joining the WTO last month.
Under WTO rules, Ukraine as a member state can require prospective new members like Russia to make commitments about their trade rules and economic practices. But Tymoshenko said Kiev had no plans to hold up Russia’s accession. “Ukraine, just like Russia, will spare no effort for these two (negotiating) processes not to be linked to one another,” she said.
She said she had agreed with Putin to start talks on the strategic agreement on Russian gas supplies in the near future. She gave no detailed time frame.
“I believe that if we manage to sign this agreement for a long term -- for five or, which is better, even 10 years -- this will be a great breakthrough,” she said.
“This will ensure stability not only for our two countries, but also for the whole region, including the European Union ... We achieved mutual understanding.’
For Moscow, joining the WTO would make it easier for Russian exporters, including major producers of steel and fertilisers, to sell their products while at the same time its own market would open up further for foreign companies.