Ukrainian government considers terminating 2009 Russian gas contract in court

Ukrainian Prime Minister Mykola Azarov said the government was considering breaking its 2009 gas contract with Russia in court, Kommersant reported this week. Azarov reportedly told the magazine’s journalists the government had already carried out consultations with legal efforts and was preparing to file its case. The government is currently trying former Prime Minister Yulia Tymoshenko for negotiating the 2009 accords. Russia has said it would respect the 2009 agreement, signed by Tymoshenko and Russian Prime Minister Vladimir Putin, and has rebuffed Kyiv’s attempts this year to renegotiate for cheaper gas. Brad Wells: Azarov’s comments further indicate the difficulty of the bilateral talks underway. With the heating season approaching in a month and a half, the gas issue is likely to continue to steal some headlines. We deem a repeat of a breakdown in talks and a shutoff of supplies to Europe as in 2008 as unlikely – both Russia and Ukraine have been working on their images as reliable international trade partners after that debacle. We expect more posturing on both sides, and see arbitration as one way for Ukraine to amicably renegotiate terms of the 2009 deal.