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Ukraine complains gas monitor deal favours Russia

10 January 2009, 16:36 CET

(KIEV) - Ukraine complained Saturday that a plan to have third-party monitors verify transit of Russian gas to Europe was weighted to bring Ukraine's gas distribution system under Russia's control.

"The essence of the protocol, frankly speaking, is to bring the Ukrainian side under Gazprom's control," Ukrainian Deputy Foreign Minister Konstyantyn Yeliseyev told journalists at a briefing in Kiev.

The deal would "essentially begin the process of expropriation of the Ukrainian gas distribution system by the Russian side," he said.

Yeliseyev pointed in particular to the inclusion of around a dozen European gas companies directly involved in the distribution of Russian gas in Europe, saying "most" of them were controlled by Russian gas giant Gazprom.

Gazprom has long sought a stake in Ukraine's gas distribution system, a point also made Thursday by Russian Prime Minister Vladimir Putin.

Ukraine's leadership has repeatedly said, however, that Kiev has no plans to allow a stake by any foreign firm.

"There should be an unambiguous principle of parity," Yeliseyev said, referring to the monitoring agreement.

He added that Ukraine had not received a written version of the agreement.

A draft of the monitoring deal circulated by Gazprom calls for the immediate creation of an international commission to verify flows of Russian gas to European customers through Ukraine.

It says the commission should include representatives of the Russian energy ministry, the Ukrainian energy ministry, the European Commission and European gas "producers, purchasers, transporters and independent experts."

Among the European companies to be represented in the commission are: E.ON of Germany, ENI of Italy, Suez of France and DEPA of Greece, along with Russia's state-run gas giant Gazprom and Ukraine's state gas company Naftogaz.

Russia accused Ukraine of "stealing" transit gas meant for European customers after Gazprom halted deliveries for Ukraine itself on New Year's Day.

Russia later cut off all gas shipments to Europe through Ukraine, resulting in huge gas shortages in Europe. Moscow says it will only turn the gas back on once Ukraine has agreed to the international monitoring plan.

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