aaus-list @ ukrainianstudies.org -- [aaus-list] Daily Briefing for Jan. 3 -- Transcript (fwd)

[Max Pyziur <pyz@brama.com>]

fyi,

MP
pyz@brama.com

---------- Forwarded message ----------
Date: Tue, 3 Jan 2006 16:31:20 -0500
From: statelists@STATE.GOV
To: DOSBRIEF@LISTS.STATE.GOV
Subject: Daily Briefing for Jan. 3 -- Transcript

   Daily Press Briefing
   Sean McCormack, Spokesman
   Washington, DC
   January 3, 2006

   INDEX:

[...]

   RUSSIA / UKRAINE
                Resumption of Russian Natural Gas to Ukraine
                U.S. Supports Gradual Implementation of Market Pricing for Energy
                Issues Between Russia and Ukraine Remain Unresolved
                Conflict Signals Insecurity of Energy Sector / Raises Questions
                about Use of Energy to Exert Political Pressure

[...]

   TRANSCRIPT:

   12:40 p.m. EST

   MR. MCCORMACK: Good afternoon, and Happy New Year.

   QUESTION: Happy New Year to you.


[...]

   QUESTION: It's cold in Western Europe, and Russia and Ukraine have been
   wrestling over gas supplies. They're going to talk, so I guess that's
   something. But you have a -- is the U.S. -- one of the things -- does the U.S.
   substantiate Russian claims Ukraine has been siphoning off undeserved portions
   of the gas or do you have any general views on this?

   MR. MCCORMACK: In terms of what amount of gas, the cubic meters flowing through
   the pipeline, I am not in a position to substantiate what the parties have been
   saying. What I do understand is the Russian Government has said that they have
   increased the amount of gas flowing through that pipeline that transits through
   Ukraine and into Western Europe. At what level they have increased the gas, I
   don't know.

   What I do know, though, is whatever steps the Russian Government has taken to
   increase the level of gas flowing through the pipeline, it doesn't resolve the
   issue between Ukraine and Russia. Now, we put out a statement over the
   weekending concerning this issue and that's still -- that's still where we are
   in terms of our -- where we are on this issue. We support a move towards market
   pricing for energy but believe that such a change should be introduced over
   time rather than suddenly and unilaterally.

   So this is an issue that the Ukraine and Russia need to work out. The steps
   that the Russians -- the Russian company Gazprom recently took raise some
   questions and we understand that the European Union has been in touch with them
   on this issue, as have we. So we'll see how it turns out. Our position
   continues to be what it was stated to be over the weekend and we're going to
   continue watching the situation closely.

   QUESTION: On the negative statement, there was a little part -- there was a
   little give, but you're saying we stand where we were?

   MR. MCCORMACK: Right.

   QUESTION: Yeah, okay. And when you say with them, I suppose you mean both sides
   -- we're in touch?

   MR. MCCORMACK: Yes.

   QUESTION: Yeah.

   MR. MCCORMACK: Yes, both sides.

   Peter.

   QUESTION: Does the United States view this as a purely economic issue or do
   they see political intent in Russia to try to put the squeeze on Ukraine?

   MR. MCCORMACK: Well, as we said in the statement over the weekend, it raises
   two kinds of questions. One, it raises questions about the insecurity in the
   energy sector, especially at the height of winter in Western and Eastern
   Europe. A number of storms have come through. There's a lot of snow. It's very
   cold. And it also raises questions about the use of energy to exert political
   pressure. Now, I would leave it to the Russian authorities to explain what
   their motivations were behind this move, but certainly it does raise those two
   kinds of questions and it's something that we have raised with the Russian
   Government.

   QUESTION: Okay. Just to come back to that last statement, at what level have
   you raised it with the Russian Government and how much pressure or how much
   input are you putting into this thing?

   MR. MCCORMACK: The -- I believe our Embassy has been in touch with Russian
   authorities. At the assistant secretary level here, we have been working -- are
   working the issue as well. So it's really at the ambassadorial/assistant
   secretary level that we've been working it.

   QUESTION: You used the phrase "exert political pressure." I mean, do you see
   this in Ukraine as a punitive measure for Russia, where you --

   MR. MCCORMACK: I'm not going to turn --

   QUESTION: -- (inaudible) away from this point?

   MR. MCCORMACK: Yeah -- I'm not going to try to discern exactly what the Russian
   motivations were in taking these steps. I would note that it is winter and the
   Ukrainians have some parliamentary elections coming up. There are also -- the
   Russians have also said that there are economic issues at stake. Now, these are
   issues that we understand the Russian authorities and the Ukrainian Government
   need to resolve. There's a question here about the pricing level. There was --
   they were previously operating under an agreement where Ukraine was provided
   gas at, I think, $50 per cubic meter and the Russian Government wants to raise
   it to over $200 per cubic meter.

   Now, whatever level the Russians and the Ukrainians agree upon for the gas is
   up to them. We believe that, certainly, a market-based mechanism is appropriate
   in terms of the pricing of the gas. But the problem that precipitated -- the
   step that precipitated where we found ourselves over the weekend was the fact
   that the Russians raised this price precipitously. They raised it suddenly and
   unilaterally. And that raised some serious concerns not only in the United
   States but in Western Europe as well, as well as among the Ukrainians,
   understandably.


[...]



   MR. MCCORMACK: Thank you.

   (The briefing was concluded at 1:17 p.m.)


   DPB #1



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