Ukraine has no plans to sign any energy agreements with Russia during an official visit by President Dmitry Medvedev next week, a Ukrainian deputy prime minister said Wednesday. First Deputy Prime Minister Andriy Kluyev was asked in the parliament whether a Russian proposal for a merger between Gazprom and Ukraine's state energy firm Naftogaz and a proposal for closer atomic energy cooperation would be signed during the visit. Kluyev replied, "As far as the sphere of energy is concerned, then these agreements are being worked on and will not be signed on May 17 to 18," the dates of Medvedev's visit.
Prime Minister Vladimir Putin took Ukraine by surprise on April 30 by his proposal to merge the two state gas monopolies. President Viktor Yanukovych has not committed to the proposal and said he would prefer the European Union to be involved in any negotiations on a possible merger. Putin also has separately suggested unifying assets in the atomic energy industry and said Russia might lend $5 billion to $6 billion to Ukraine to build two new nuclear reactors in its Rivne and Khmelnytsky plants.
"We are now working on these contracts," Kluyev said. "The conditions are a straightforward loan and no transfer of property. This will not be signed on May 17 to 18." Ukraine's nuclear power plants cover about half of its power needs. Klyuev said only five agreements would be signed during the Medvedev visit, covering issues such as border demarcation and interbank cooperation.
