[Ohio UZO News] Ukraine: State Dep't; WP; AP; FT

[Deychak, Orest]

U.S. Department of State

Robert Wood

Acting Spokesman
Daily Press Briefing

February 10, 2009

http://www.state.gov/r/pa/prs/dpb/2009/02/116495.htm

Excerpt on UKRAINE

  Ukraine Should Work with IMF to Implement Program / Ukraine an
Important Partner for the U.S

QUESTION: A new topic? 

MR. WOOD: Yeah. 

QUESTION: There are some reports that Ukraine is close to defaulting on
some IMF loans and is looking to the United States, Russia, and other -
not Russia, sorry - the U.S. and other countries in Europe to possibly
help them with financial aid. Have they talked to you about that, or is
that something you're considering? 

MR. WOOD: Well, I know that Prime Minister Tymoshenko has reached out to
a number of countries on this issue. And we very much support Ukraine's
program with the IMF. And we believe the Ukraine should work hard with
the IMF to make sure that it implements that economic program, as has
been outlined. But as I said, we're a strong supporter of Ukraine's IMF
program. 

QUESTION: So does that mean that you are going to support it by helping
it not to default on its loans? 

MR. WOOD: Well, you know, I can't tell you what we will or will not do
at this point. You know, should Ukraine come to us, we would obviously -


QUESTION: Well, apparently, they have come to you. 

MR. WOOD: Well - 

QUESTION: Could you finish the sentence: Should Ukraine come to us...?

MR. WOOD: Yeah, should they come to us, we would certainly be - we'd
look at what they have - look at their request. But I can't give you
promises from this podium because I'm not aware that they've actually
come to us on this. But if they have - and I'll take your word that
maybe they have -

QUESTION: (Inaudible.) 

MR. WOOD: Hmm?

QUESTION: (Inaudible.)

MR. WOOD: Well, Oh, you know, I would just say that we would try to be
as supportive of the government as we could be. 

Yes. 

QUESTION: How exactly would you do that? Where would this money come
from? 

MR. WOOD: Well, look - (laughter) - 

QUESTION: Actually, the Senate is about to vote on something that seems
to vastly outweigh anything that Ukraine might ever need or want. 

MR. WOOD: Ukraine is an important partner for the United States. We'd
have to take a look at a request, should one come in.

The Washington Post

A Section

Around the World 

11 February 2009

FINAL

A12

Ukraine

President Condemns Premier's Russia Deals

Ukrainian President Viktor Yushchenko said Tuesday that deals negotiated
by his own prime minister on Russian gas supplies and a proposed loan
from Moscow were as treacherous as the 1939 Nazi-Soviet pact.

Yushchenko and Prime Minister Yulia Tymoshenko were allied in the 2004
Orange Revolution that swept the president to power but have been at
odds since then.

Yushchenko had previously denounced the deal that restored transit gas
flows to Europe after a two-week cutoff but had told E.U. leaders he
would not challenge it.

Associated Press

EU Ukraine Financial Crisis; Ukraine IMF program crucial to Europe
economy 

11 February 2009

07:52

KIEV, Ukraine (AP) - A top banker has warned that Ukraine's failure to
receive the second part of an emergency loan from the International
Monetary Fund may lead to "devastating" consequences for Europe's
economy, his office said Wednesday.

Last week the IMF postponed the second $1.9 billion tranche of the loan
after the country fell behind on stabilization measures needed to
receive the aid, which is to total $16.4 billion.

Petro Poroshenko, the head of the National Bank Council, said Tuesday it
was crucial that Ukraine continues receiving the funding.

"I do not allow the thought of ending cooperation with the IMF today,
because that will have devastating consequences for the entire European
economy," Poroshenko said in comments reported by his office.

Ukraine is among the countries hit hardest by the global financial
crisis. The economy is plunging into a deep recession, the national
currency has lost 40 percent since last fall and the state gas company
is struggling to service multibillion-dollar debts for Russian gas
imports.

A failure of the banking system could severely damage European banks
that have major stakes in Ukraine's financial institutions, experts say.

Europe also relies on Ukraine for steel and grain exports and the
transit of Russian natural gas. A gas row with Moscow left over a dozen
European countries with little or no gas for two weeks in January after
Russia cut off gas supplies through Ukraine.

Problems with the IMF have prompted Prime Minister Yulia Tymoshenko to
turn to Russia for a $5 billion loan last week. But Tymoshenko came
under fire from her fierce rival, President Viktor Yushchenko, who said
the planned loan would make the country too dependent on Russia.

Tymoshenko also turned to a number of other countries for aid, including
the United States. The State Department said the United States would
consider the request.

The Financial Times

Gazprom 'committed an act of technological aggression'

http://www.ft.com/cms/s/0/3c6d7fae-f7dd-11dd-a284-000077b07658.html

Published: February 11 2009 

>From Mr Viacheslav Kniazhnytskyi.

Sir, Last month Gazprom launched a massive and aggressive misinformation
campaign against Ukraine. After the conclusion of the Ukraine-Russia gas
deal, I had hoped that this propaganda war was over. Therefore I was
surprised to read in your newspaper ("Russia denies Ukraine gas system
move
<http://www.ft.com/cms/s/0/c4dc11f0-f230-11dd-9678-0000779fd2ac.html> ",
February 4) groundless allegations about Ukraine's gas transport system
(GTS).

Surely, Vladimir Chizhov, the Russian ambassador to the European Union,
was aware of the European Commission's Technical Assistance to the
Commonwealth of Independent States programme conclusions, published in
2007, that the Ukrainian GTS was in a satisfactory technical condition?
Surely, Mr Chizhov was aware of the official data of the Russian and
Ukrainian ministries of emergencies: while Ukraine had three accidents
in its transit pipeline network, the biggest in Europe, in 2006 and one
in 2007, Russia had 37 in 2006 and 43 in 2007. Is Mr Chizhov really in
any position to make expert statements on Ukrainian GTS reliability?

My point is that Ukraine is conscious that its GTS, like any other
continental infrastructure facility, needs ongoing modernisation. To
this end we are investing our own resources as well as co-operating with
interested parties to ensure upgrading of our GTS and improve its
security. On March 23 we will host a special investment conference in
Brussels devoted to this topic.

The recent crisis proved that our security and efficiency systems were
reliable and operational. Moreover, its operation in the crisis
environment revealed additional potential in terms of its
sustainability.

By cutting gas off and attempting to place Ukrainian operators in breach
of operational procedures, Gazprom committed an act of technological
aggression. Its ploy did not work because Ukraine has modernised the
system and was able to continue operating.

Europe needs co-operation, not accusations.

Viacheslav Kniazhnytskyi,
Counsellor on Energy Issues,
Mission of Ukraine to the European Union

 

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