Ukraine, Russia Prepared to Go Ahead with Long-term Cooperation: PM Azarov

Ukrainian Prime Minister Mykola Azarov has said that Russia and Ukraine are prepared to go ahead with a new stage in long-term cooperation, said media reports.

According to the Vedomosti business daily, Russia will use the thrust created by a deal extending stay of its naval base in Crimea for a discount gas prices to forge new long-term partnership in the air industry, energy and nuclear sectors with Kiev, reports said.

Ukraine parliament approved the contentious deal yesterday extending the lease on a Russian base in the Ukrainian port of Sevastopol for 25 years after the current lease expires in 2017. In return for the lease, which may be further extended by five years, Ukraine will receive a 30% discount on Russian natural gas that is equal to $40 billion.

Reports said that the two countries would hold intergovernmental discussions on possible joint projects.

“The first Russian-Ukrainian intergovernmental commission for two years will be held on Friday,” Mykola Azarov was quoted as saying, adding Ukraine that was willing to renew ‘a large-scale partnership with Russia’.

He also asked all government bodies and ministries to prepare solid proposals ahead of the commission meeting, reports said.

“We are ready for everything at once,” Russian Prime Minister Vladimir Putin was quoted as saying by the Vedomosti daily about Russia’s intentions.

He has proposed forming a holding comping ‘incorporating production, nuclear engineering, the fuel cycle, and operations in the nuclear fuel sector’, said reports.

As the two countries give each other nuclear fuel, it will be easier for them to modernize the joint nuclear sector and expand it to the foreign market.

Russia is also ready to launch into a partnership with Ukraine in the air and shipbuilding spheres.

“If Ukrainian experts regard the proposal as too revolutionary, we are ready to work step-by-step,” Vedomosti quoted Putin as saying.

The Russian premier also said the gas discount for Ukraine will seriously affect Russia’s GDP, causing the budget deficit to grow, said reports.

(Based on media reports)
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