Russia 'Might Demand USD 11 B from Ukraine,' Says Medvedev
Russia might take Ukraine to court after Kiev violated the 2010 Kharkiv Pact, says Russian Prime Minister Dmitriy Medvedev.
In a speech at the Russian Parliament, Medvedev said the losses could be recuperated "out of Ukraine's budget", as he was quoted by Russian website Lenta.ru.
He asserted, however, that such a measure, though possible, is not yet to be taken.
The Kharkiv agreements, sealed in April 2010, extended Russia's lease on naval facilities in Crimea until 2042, and in return Moscow announced gas discounts for Kiev, reducing the price for 1000 cubic meters of gas from USD 400 to USD 100.
Earlier in March, Russia announced it was scrapping the existing price regime with Ukraine due to lack of payment from Kiev and to the political situation after the ousting of president Viktor Yanukovych on February 22.
- » EP Approves Association With Georgia, Calls Russia to Withdraw
- » European Council Approves Juncker's EUR 315 B Investment Plan
- » Lifting of Sanctions Against Russia Dependent on Ukrainian Integrity - EU
- » EU Slaps New Sanctions on Crimea Targeting Energy, Tourism
- » High Rates, Volatile Rouble Increase Risks to Russia’s Economy, Fitch Says
- » Putin Says Russia’s Economic Woes Will Be Over in Two Years
@OMG - that is true. But Greece took EUR 240 Billions, Ukraine does not need that much. Nevertheless, transition period will be difficult and the UA population will suffer for a couple of years, it is unavoidable. But there is a light at the end. In 1989, Poland was on a comparable economic level to the UA. Right now Poland is still much below under the western EU level but with an average monthly salary of about USD 1300 one can say it is a success. So get to work Ukraine, no one else will do it, you will not be left alone.
As an introduction you get a few loans from the IMF, for a couple of billions more or less.
To comply for those loans your regime will be a little tighter then the one of Greece.
We are also very sorry to announce you your energy bill (gas, electricity, ...) will go up by minimum 50%.
Your taxes will go up too. The IMF wants some guarantees for it's money...
But don't worry, you can export to the EU and compete with EU members without needing to implement EU standards. At least not in the first year. Off course there will come a time that you need to comply with the EU production rules. That will cost a lot of money. But don't worry, the EU will give you that money. Or better the EU tax payer.
It might be that they will not be happy with that, they might remember that they had to deal with the much lower prices of your products.
But all in all, that will not be a big drama. It's not that Ukraine has much more to offer then some agricultural products and the use of some pipelines on their territory.