Kiev to use Tymoshenko\'s case in gas talks with Moscow

Ukraine intends to use the conviction of former Prime Minister Yulia Tymoshenko, who was sentenced to seven years in prison for abuse of office by signing of a 2009 gas deal with Russia, as an argument to revise the agreement in gas talks with Moscow, Kommersant Ukraina business daily quoted on Wednesday an Energy Ministry source as saying. "According to the court's decision, the current contract was signed in violation of Ukrainian legislation, and it must be revised," the source told Kommersant Ukraina. The gas deal tied the price for Russian gas to international oil prices which have risen strongly since 2009 bloating Ukraine's energy bill. The contract says Ukraine must import no less than 33 billion cubic meters of gas from Russia. Ukraine is set to pay about $400 per thousand cubic meters of imported Russian gas in the fourth quarter of this year. Kiev insists on reducing both the price and the volume of imports. In August Russian President Dmitry Medvedev said Ukraine could get gas price discounts if it joined the Customs Union led by Russia or made an attractive offer on its gas transport system. Kiev, reluctant to become a full union member because that would rule out signing a free trade agreement with the European Union, has proposed creating a trilateral gas consortium with the European Union. Moscow did not welcome the idea at that time. Prime Minister Mykola Azarov said on Tuesday he expected to revise the gas import agreement with Russia in the next 10 to 15 days. The Energy Ministry source also said that Moscow and Kiev were actively discussing the creation of a consortium on the basis of the Ukrainian gas transport system. "However, in the EU legislation, which we intend to implement, there are some barriers to the creation of such alliances," he said. Russia insisted on Tuesday that the existing gas deal stands. Prime Minister Vladimir Putin warned that it was “dangerous” and “counterproductive” to question existing gas agreements between Russia and Ukraine. The Russian Foreign Ministry said earlier that day that “Yulia Tymoshenko was prosecuted for the current, still valid, legally binding agreements between Gazprom and Naftogaz Ukraine,” and warned the verdict must not affect the implementation of bilateral gas agreements.