Odesa-Brody reversal to be Tymoshenko’s acid test - Yushchenko’s aide warns

To preempt any more objections on the part of the cabinet, the president-appointed team proposes to attract the Ukrainian company Ukrnafta to act as a financial guarantor (instead of the earlier-proposed foreign company) to pump oil to privately-owned refineries in Western Ukraine, Halychyna and NaftoKhimik Prykarpattya.

“Any procrastination with Odesa-Brody reversal and failure to implement the presidential decree will jeopardize the national security and incur economic losses. That is why the team had to heed the ungrounded and counterproductive proposals of the reversal opponents,” B. Sokolovsky claims.

The presidential administration, he reminded, prepared contracts July 14 to supply 8.25 mn tons of Caspian oil to both refineries and to the border with Hungary and Slovakia.

“The implementation of these contracts would have diversified oil supplies to Ukraine and Europe and, consequently, brought down domestic gasoline prices and generated more budget revenue,” Sokolovsky said.

“Quite unexpectedly, on July 16 Premier Tymoshenko banned the UkrTransNafta, the state-run oil pumping company, to take part in the negotiations to supply oil to Ukraine and pump it by the Odesa-Brody line,” Sokolovsky added.

In addition, Sokolovsky continued, the cabinet has not negotiated with Russia oil transit along the route which is more lucrative for Ukraine and which will by-pass Odesa-Brody: Michurinsk – Okhtyrka – Kremenchuk – Odesa.

The lobbying by highly-placed officials of the present transit route encompassing the Odesa-Brody pipeline for pumping the Russian oil to the Black Sea runs counter to Ukraine’s national interests, he claimed.

In line with the National Defense and Security Council ruling approved on July 28 and Yushchenko’s decree of Aug. 15, the decision to reverse Odesa-Brody must be taken by Sept. 1.

The replacement of a foreign company with the domestic UkrNafta company clears the way for Odesa-Brody reversal, Sokolovsky continues.

“The cabinet has all grounds to instruct the ministry of fuel and energy to take the decision on the pipeline reversal as well as start talks with Russia on the alternative route for its oil to Odesa.

By taking or rejecting the decision to reverse the Odesa-Brody, the government can prove to the nation whether it is guided by considerations of national security or by some other consideration, Sokolovsky stressed.