Putin: Russia’s plans to solve Ukraine’s debt problem rejected
President Putin said Moscow offered numerous solutions to Ukrainian gas debts which have been rejected by Kyiv and the IMF as complicated and difficult procedures. He expects a solution to be found soon otherwise it could lead to a crisis.
Talking about Russian
gas delivery to Europe at the Valdai international discussion
club meeting on Friday the President explained all the
concessions Russia has made and is ready to make to see gas flow
into Ukraine and urged the Western partners to co-operate.
Ukraine’s debt to Russia is 5.6 billion dollars for gas delivery
and 3 billion dollars of credit. Russia has revised the sum of
the debt and now demands only 4.5 billion. In January Ukraine is
to receive a tranche from the IMF. The final sum will be
reconsidered by the IMF after October, 26.
Putin said Russia suggested several variants to Kyiv and IMF of
how the debt should be covered.
The first option, that was voiced by Russia, is the IMF credit
approved for January should be transferred in December. In this
case Ukraine would be able to process pre-payment for gas. But
the answer of the IMF was negative because of the complicated
procedure of taking decisions.
It was the same answer for another proposition to provide Ukraine
a 1.5 billion dollars bridge credit or a high rank bank
guarantee.
The third idea proposed by the President also involves bridge
credit from the West.
The Russian president compared Ukraine with a girl.
“In Ukraine and in Russia if a man invites a girl to a
restaurant he generally pays for her,” he said. “With
you it is Hamburg reckoning, everybody should pay for oneself.
But in this case it is another situation. The European Union
offered an association with Ukraine and took certain
responsibilities. So, help Ukraine! At least a month! Give it a
bridge credit.”
Unfortunately IMF officials rejected this idea saying it was
impossible.
The president recalled last year’s situation. Russia offered to
grant Ukraine a credit and to keep the gas price low for the
first quarter of the year. The price could be frozen if the
Ukrainian part kept on paying punctually and paying the whole
debt. But it did not happen.
Recently, Ukrainian officials stated they have only 3.1 billion
dollars though the current debt for Russia is 4.5 billion. Kyiv
officials suggested Ukraine should pay only a part of the debt
but then it would not be able to process pre-payment. Or
Ukrainians could process pre-payment and pay the debt later in
March or April. The Russian president considered both variants
unacceptable because he was sure Russia would not get the money.
“We have passed this already many times,” he said.
“So we are not going to do it like that anymore.”
President Putin has also turned down plan presented by the
European Commission. According to it, Russia should provide gas
to Ukraine at the credit of future gas transit costs or without
pre-payment which is also a commercial credit.
“We told our friends in Ukraine and in European Commission we
were not doing it like this anymore,“ added the president.
Finally, President Putin said he still believed the problem would
be solved in the near future.
The next trilateral talks are to be on October, 29.
European Commission President Jose Manuel Barroso stated the EC
was ready to provide 790 million euros to help pay debt to
Russia, the Wall Street Journal reported Friday.