December 21, 2013

The Criminal Case against the Government?

According to Ukrainian statistics over the 4 years (2009, 2010, 2011 and 2012) Ukraine had imported from Russia in general 131.6 billion cubic meters of natural gas (22.2 — in 2009, 36.5 — in 2010, nearly 40.0 in 2011, and 32.9 in 2012).

During this period, Ukraine had overpaid to the RF 150-160 U.S. dollars per each 1.000 cubic meters. And that's if we take into account all discounts: 20 % in 2009, the so-called Kharkiv 100 US dollars starting from 2010. The level of overpayment is not difficult to evaluate by comparing our pay with average European prices of piped natural gas, transportation costs included.

So, in general, within the 4 years (not including the current 2013) we had overpaid Moscow more than 20 billion U.S. dollars! This amount has recently been confirmed by the current Prime Minister of Ukraine.

At this, “popyeryedniki” (predecessors) had overpaid 3.0–3.5 billion (for 22.2 billion cubic meters) according to the contract which they did not consider wrong and thus its implementation does not entail criminal liability.

But the current government has overpaid 17 billion U.S. dollars according to the contract which they recognize from the beginning as a “criminal” one.

17 billion a loss for the implementation of the “criminal” contract — and thus its fulfillment is equivalent to the fulfillment of a criminal order. Who of the involved has been punished for this? Where are criminal proceedings? Why do the Prosecutor General and courts not react? After all, according to current officials, the state has suffered loss of especially large size. They (the current government), keep saying one thing and doing another — harming Ukrainians.

How should the power act under the circumstances?

1. To immediately stop all sorts of payments for gas and cooperation in the gas contract with Gazprom of 19 January 2009, and to offer our own Ukrainian variant of a fair Contract.

2. To punish all those involved (including foreign citizens) in the damage to the Ukrainian state. In particular — through the deliberate “stripping” of clearly overpriced overpayments for gas.

Within nearly 4 years the current government could have fulfilled its promises. If the gas supplier (in this case — Gazprom of the RF) had been delaying with the transition to fair terms of cooperation in the gas sector, our current government should have lucidly explain it to all, especially to those citizens of Ukraine who echoing all sorts of “Smityuhs” (Rag, Tag and Bob- tail) are trying to shout the surname of the president of a foreign country. Of course, in parallel with negotiations with the Russian Federation, it is necessary to reduce gas consumption, and to do our best in order not to depend on the import monopoly.

Unfortunately, despite the unprecedented concentration of power, no such activity over the past almost 4 years has not been seen. The Government of Ukraine speaks about “papyeryedniks” (predecessors) and participates in the overspending that has elements of a crime.

In general, it seems that the current leadership of our country should try and make the Kremlin return without any conditions the overpaid money for Russian gas (which is now a lot more than 15 billion US dollars, which the current government lacks ostensibly to save the state in the context of association with the EU).

That is how a strategic, friendly partner would have acted.

If it is impossible to return the overpaid money, the overpayment should be counted as the RF’s debt to Ukraine and this should be voiced publicly.

Besides, it should be counted in current prices for the whole amount of the gas pumped from Ukraine into the Soviet Union from the beginning of its production. Then it turns out that the Kremlin would have to return more than 165 billion U.S. dollars. Perhaps it was this figure that the Prime Minister of Ukraine mentioned. But he did it clumsily and in the wrong place, and that's why caused mixed reactions (speaking undiplomatically — laughter) of people who are versed in finance. Because nobody was able to clearly justify that figure. After all that has to do with European integration about which the Prime Minister of Ukraine has never cared.

Our government, for its part, would have to listen to the Ukrainian people about European integration, to lucidly explain to the people of Eastern Ukraine what Europe is about. And it should have eventually reformatted the Ukrainian economy from the “Soviet” one, in which we, unfortunately, live today, up to the needs of the Ukrainian independent state. And not for obscure, so much sung about (by the government itself) compensations allegedly for association with the EU. However, no one has managed to explain lucidly — whom, until when and for what those compensations have to be given. And most importantly — how much, as had been voiced numbers from 3 to 165 billion U.S. dollars (amazing accuracy!) just for the European choice. Logically, the question arises: how much, according to the current government, would cost us joining the EU?

It turns out that it is disadvantageous for the government to explain to its people that the transition to higher (i.e. European) standards will only contribute to competitive Ukrainian goods and services having good sales in the EU and Russia. It is easier as it is now — a faulty product is only sold in the market of the CU until it is pushed away even from there by Russia within a few years. In the EU it is not competitive because someone benefits from such status quo. Because someone from outside Ukraine benefits from “keeping us on a short leash.”