Friday May 22, 08:51 AM
EU should lend Ukraine money: Medvedev
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KHABAROVSK, Russia (AFP) - Russian President Dmitry Medvedev urged the European Union to lend Ukraine money he said Kiev needed to meet its gas payment obligations.
The Russian leader said he doubted Ukraine's ability to pay four billion dollars for 19.5 billion cubic metres of gas that Kiev needs to replenish its underground reservoirs in time for winter.
He said a syndicated loan agreement should be reached, with European and Russian participation. The EU, however, should come up with most of the money, Medvedev added.
"We are ready to help the Ukrainian state but would like the European Union, those countries that are interested in reliable security of energy cooperation, to take upon themselves the bulk of this work," he said.
Referring to the financial problems Moscow believes Kiev is suffering, Medvedev said: "We have doubts about Ukraine's ability to pay."
Ukraine, one of the countries hardest hit by the global economic crisis, has asked Moscow for a five-billion dollar loan to help with its gas payments.
But the Russian finance ministry said this week a decision had not yet been made.
In Kiev on Thursday, however, Naftogaz spokesman Valentin Zemliansky denied there was any problems, telling AFP: "We're not anticipating any crisis. The financial situation of the company is stable."
A payment dispute between Russia and Ukraine was at the heart of the gas conflict that shut down supplies to a dozen European customers in January.
On Thursday, a Russian government official told the country's news agencies that Ukraine might find itself "on the brink of a new gas crisis" if it did not sort out its financial difficulties.
In response to a question from a reporter about whether Russia could guarantee there would not be a repeat of the last winter's crisis, a visibly irritated Medvedev said it was not Russia's job to do so.
"The Russian Federation has not given any assurances and will not give any," he said. "What would be the good of that? Let those who pay for gas give assurances."
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