Ukrainian, Russian leaders accuse each other of betrayal, media reports

Ukrainian President Viktor Yanukovych told members of his ruling Party of Regions in a closed door meeting on September 4 that the Russian government violated the Kharkiv agreements that he signed in 2010, Kyiv’s Dzerkalo Tyzhnia newspaper reported on September 6, citing anonymous sources. The Russian government failed to change the formula to determine the natural gas price that’s charged to Ukraine, as had been agreed to, Yanukovych said. Even with the Kharkiv agreements, Ukraine is paying $430 per 1,000 cubic meters of gas, while nations such as Germany, Italy and Austria pay between $360 and $380.

“Therefore, Yanukovych came to the conclusion that partnership and deferential treatment can’t be expected from Ukraine’s northern neighbor and that’s why his decision in favor of the EU had no alternative,” the newspaper reported. The Kharkiv Agreements extended the presence of the Russian Black Sea Fleet for a quarter century in exchange for a 30% discount in Ukraine’s gas price, or no more than $100 per 1,000 cubic meters.

The Russian government will consider imposing import tariffs on Ukrainian goods once Ukrainian President Viktor Yanukovych signs the Ukraine-EU Association Agreement in late November, Russian presidential advisor Sergei Glazyev told the Ekho Moskvy radio network during a September 7 interview.

“We understand that in accepting the technical regulations of the EU – which won’t offer even a kopiyka to modernize and refit Ukrainian enterprises – these enterprises – producers of clothing, food and tools – can’t work under European technical regulations,” Glazyev said. “That means they will come to us with their products. They won’t have any place else. The Ukrainian market will be closed to them. If we see that goods begin to seep into our market – including Ukrainian ones that will be squeezed out by European goods – in that case we will introduce impose import tariffs on Ukrainian goods.”

Signing the Association Agreement defies common sense, Ukraine’s economic interests and undermines the government’s electoral base, Glazyev said. He said he was told by a high-ranking Kyiv official that Ukrainian leaders are concerned their bank accounts, real estate and oth wealth would be threatened with confiscation and they would be prosecuted for money laundering. After signing Ukraine’s deeper cooperation agreement with the Customs Union in Minsk in late May, Ukrainian Prime Minister Mykola Azarov returned to Kyiv to unite Ukraine’s technical regulations with those of the Customs Union. But Russian leaders told him that couldn’t be done if Ukraine is to sign the Association Agreement, Glazyev said. “They are fooling us, they are fooling themselves, they are fooling voters and they’re fooling their own president,” he said. “Why are they doing this?”