The Reset Button Hilary Clinton gave to Russia’s Foreign Minister, Sergei Lavrov, in March 2009, at the start of her run as Secretary of State, comes to mind. Somebody at the State Dept. mistranslated the word “reset” into Russian so that Lavrov was handed a symbolic gift labeled “peregruzka” which means “overcharged.” For the US, even a fresh start with Russia would have to come with baggage.
“Overcharged” could also have been a reference to Russia’s gas war with Ukraine. Only six weeks earlier, the dispute came to a head when the gas supply from Russia was cut off. For three frigid weeks, the citizens of Ukraine and a half dozen Eastern European countries were given a chance to contemplate their dependence on a pipeline.
This is the story of the cold war between Russia and Ukraine from 2007 to 2014 narrated by:
Vladimir Putin, Prime Minister and President of Russia
Viktor Yanukovych, Prime Minister and President of Ukraine
Dmitry Medvedev, President of Russia
Alexei Miller, Chairman of Gazprom
Sergei Lavrov, Minister of Foreign Affairs of Russia
Yulia Tymoshenko, Prime Minister of Ukraine
The words are from transcripts of meetings, press conferences, interviews, and speeches, archived at the Kremlin website.
The story begins with a lighthearted joke.
June 21, 2007 |
President of Russia Vladimir Putin Meeting with Ukrainian Prime Minister Viktor Yanukovych |
http://archive.kremlin.ru/...
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Yanukovych: Unfortunately, Ukraine has been going through a period of political crisis that began at the start of April. The main thing that we have achieved over this time is to ensure that all the branches of power operate within the framework of the law. There are still some outstanding questions that we need to resolve, and that concern the opposition mostly.
Putin: Viktor Fyodorovich, you don’t have any opposition! Everyone is in power! Where’s the opposition? I can’t figure it out. Everyone there seems to be in power…
Yanukovych: I remember well one of the first conversations I had with you. You asked me, what is constitutional reform?
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October 9, 2007 |
President of Russia Vladimir Putin Meeting with Ukrainian Prime Minister Viktor Yanukovych
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Putin: Good evening. I would like to say once again that Russia seeks to develop the closest possible relations in all areas, above all in the economy, of course, with as fraternal a country as Ukraine.
Yanukovych: Thank you, Vladimir Vladimirovich. I am very grateful to you for inviting me to this meeting. We are happy with our relations, developing in a range of economic sectors, including the energy sector. This is why we signed an agreement today with a mechanism for settling the so-called debt issue. We think that this agreement is a result of the fact that we fully trust each other in such important sectors as the gas sector.
Putin: Viktor Fyodorovich, It came as a complete surprise to us that such a debt – around 1.3 billion – had accumulated. But I will not go into all the details now. It has been decided that Gazprom will gain ownership rights to a certain volume of gas stored in reservoirs on Ukrainian territory. |
January 18, 2008 |
Press Conference Following Talks between Russia and Bulgaria |
http://archive.kremlin.ru/...
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Question: Today, an agreement was signed concerning the construction of the South Stream gas pipeline. How did you come to sign this agreement? What does this agreement mean for Russia, Bulgaria and Europe as a whole?
Putin: Expanding transport infrastructure for the supply of energy to Europe is an absolutely vital task. I want to stress in particular that the construction of new infrastructure opportunities does not mean the reduction or phasing out of our cooperation with other transit states. [The route of the new pipeline would bypass Ukraine, resulting in the loss of much needed revenue. See map.] Work on the new routes will provide security, enhance stability, and create new transportation capacity for increasing amounts of energy supplies to European consumers. |
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December 31, 2008 |
President of Russia Dmitry Medvedev Meeting with Prime Minister Vladimir Putin |
http://archive.kremlin.ru/...
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Medvedev: Vladimir Vladimirovich, over the last few years a regrettable new tradition has emerged. Just when everyone is getting ready to celebrate the New Year, our Ukrainian partners start gas supply negotiations with us, and this year is no exception. How are the negotiations going?
Putin: Yes, it’s nearly New Year – the reactivation of these negotiations. Dmitry Anatolyevich, you understand the situation, you spent a long time as the state representative to Gazprom. Over the past few years, our company has bought gas from our Central Asian partners, in Turkmenistan, Uzbekistan and Kazakhstan.
Gazprom gets gas from these countries in the order of $340 for a thousand cubic meters. If you add the cost of transporting the gas, then for Ukraine the price would be $380 per 1000 cubic meters. Gazprom offered to sell gas to its Ukrainian partners at $250 per 1000 cubic meters. We did this for a number of reasons.
We understand what a difficult position Ukraine currently finds itself in regarding the global financial and economic crisis. None of our partners should be in the position of not being able to pay for our goods. The situation in Ukraine is made much worse by the increasingly tense political rivalry, the internecine warfare, itself exerts such a negative influence on the economic situation.
The Ukrainian partners have officially informed us that, should there be no signing of the contract for gas supply to Ukraine then Ukraine will obstruct the gas transfer to the primary consumers, in Western Europe. |
January 9, 2009 |
President of Russia Dmitry Medvedev Meeting with Chairman of Gazprom Alexei Miller |
http://archive.kremlin.ru/...
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Medvedev: Alexei Borisovich, you were in Brussels yesterday where you participated in difficult negotiations with colleagues from the EU and Ukraine. What were the results of these negotiations?
Miller: All day yesterday we held consultations and ten companies have confirmed their support for an independent international committee. The Ukrainian party adopted a destructive position and refused to sign.
Medvedev: I spoke with the Ukrainian President and set out the six conditions under which Russia and Gazprom would be willing to work with Ukraine. These include the creation of the monitoring mechanism you referred to.
There must be competent and qualified observers from the European Union who will work with real equipment and who will have access to all the technological aspects of this situation, including the underground storage of gas. Otherwise we will never be able to make this situation public. And this is our goal: to show who is actually involved in stealing gas.
Miller: To put it mildly, it seems that the Ukrainian side is afraid of such a mechanism. Because we are well aware that the theft of Russian gas did not begin yesterday; the practice has been ongoing for many years now and our Ukrainian colleagues have benefited from this. I think that if such a mechanism is set up then our Ukrainian colleagues will have to work honestly and transparently. It seems that they are not very willing to do so.
Medvedev: This must be closely monitored, bearing in mind that this type of theft cannot but have consequences. And in the future I think that we should use this as a base for compensation claims for losses.
Last year when we supplied gas to Ukraine for $179.50, the same gas was actually sold to consumers at a price of $320 per thousand cubic meters. This margin went straight into the pockets of certain unknown structures, structures that most likely represent corrupt interests. We need to speak openly about this and our European colleagues need to know this.
Miller: Of course in this situation the question to ask is: where is the money? Incidentally, the current crisis has shown that the first countries to be affected are in the Balkans. Therefore the construction of South Stream is becoming more urgent. |
January 11, 2009 |
President of Russia Dmitry Medvedev Meeting with Minister of Foreign Affairs Sergei Lavrov |
http://archive.kremlin.ru/... |
Medvedev: Sergei Viktorovich, yesterday a document was signed on monitoring the transit of Russian gas via Ukrainian territory. Russia has put its signature to this document. I want to know if the document signed by Ukraine has been received yet.
Lavrov: Dmitry Anatolyevich, our representative at the European Union received the document with Ukraine’s signature today. But this signature is accompanied by a whole series of demands that Russia deliver set volumes of gas to Ukraine.
Medvedev: I see. In this case we are forced to consider the document null and void. |
January 14, 2009 |
President of Russia Dmitry Medvedev Meeting with Chairman of Gazprom Alexei Miller |
http://archive.kremlin.ru/... |
Medvedev: Alexei Borisovich, what is the situation with the transport of gas via Ukraine? Have the Ukrainians taken any steps?
Miller: Today, we received a draft agreement. The only condition the Ukrainians put forward is that Gazprom deliver to Naftogaz Ukraine 360 million cubic meters of gas in January, 600 million cubic meters in February, and another 600 million in March.
Medvedev: On what conditions?
Miller: Without payment, that is to say for free. We are being asked to make a present of $700 million to Naftogaz Ukraine.
Medvedev: Just to get supplies restarted?
Miller: Ukraine’s actions to block the transit of Russian gas via its territory have affected Slovakia, Serbia, Bulgaria, Bosnia, Moldova, Macedonia, Hungary and Croatia.
Medvedev: Almost the whole of Eastern Europe.
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January 17, 2009 |
Press Conference Following the Moscow International Conference on Ensuring Russian Gas Supplies to European Consumers |
http://archive.kremlin.ru/... |
Medvedev: Good afternoon dear colleagues! I would like to say a few words about the meeting that just took place. First. We talked about how we can achieve the immediate resumption of deliveries of Russian gas to Europe. These negotiations will continue between Russia and Ukraine. They will be conducted by Prime Minister of Russia Vladimir Putin and Ukrainian Prime Minister Yulia Tymoshenko. |
January 18, 2009 |
Statements by Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Yulia Tymoshenko on the results of their talks |
http://archive.premier.gov.ru/... |
Putin: We would like to brief you that it has been agreed that Russia and Ukraine are adopting the European price formula in the trade in natural gas. We have agreed that in 2009 the Ukrainian partners will be granted a 20% discount on condition that the preferential 2008 tariff for pumping Russian gas to European consumers through the territory of Ukraine will be preserved in 2009. At the same time we have also agreed that as of January 1, 2010 we will switch entirely to European standards of pricing and pumping tariffs without any exemptions and discounts either for transit or for the gas price.
Tymoshenko: The talks were indeed very difficult, but we have reached an understanding that enables us to sign all the contract documents. We have instructed the head of Naftogaz and Mr. Putin has instructed Gazprom to prepare several documents as agreed during these talks today before Monday. Immediately after the signing of all the documents on gas transit and the purchase of gas all the gas supplies to Europe will be restored. I think it has been a fruitful day and today's summit has yielded results.
Putin: Transit will be restored shortly, as the Ukrainian side has assured us. |
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January 20, 2009 |
President of Russia Dmitry Medvedev Meeting with Chairman of Gazprom Alexei Miller |
http://archive.kremlin.ru/... |
Medvedev: Alexei Borisovich, yesterday at the end of some long and very difficult negotiations, several agreements relating to the supply of Russian gas to Ukraine and gas transit through Ukraine were signed. What is the situation this morning?
Miller: By 10 o'clock this morning our Ukrainian colleagues had the Ukrainian gas transport system up and running, and Ukraine is ready to open the taps on its part of the pipeline to effect the transit of Russian gas to Europe.
Medvedev: That's good. Now let’s talk a little about what all this means. I would like to go over some of the small print. First off, please remind me at what price we sold gas to Ukrainian consumers last year.
Miller: $179.50 per thousand cubic meters.
Medvedev: Late last year what prices were discussed?
Miller: $250 per thousand cubic meters.
Medvedev: At what price will we be supplying gas to Ukraine in the first quarter of this year?
Miller: $450 per thousand cubic meters. Taking into account a discount of 20%, in the first quarter the price for Ukraine will be $360 per thousand cubic meters.
Medvedev: Can you remind me why this discount was applied? |
April 21, 2010 |
Joint News Conference: President of Russia Dmitry Medvedev and President of Ukraine Viktor Yanukovych |
http://archive.kremlin.ru/... |
Yanukovych: Mr. President, dear colleagues, ladies and gentlemen, The decisions made today and the documents that were signed were the result of a lot of blood, sweat and tears on both sides.
We have decided to expedite a decision on the presence of the Black Sea Fleet on Ukrainian territory, because our Russian colleagues, our friends, had to know how this question was going to be resolved. The extension of the period for stationing the Black Sea Fleet at its Sevastopol base is mportant for Russia.
We are looking at this issue in the context of a European system of collective security, and we know that the Black Sea Fleet will be one of the guarantors of security among Black Sea countries.
Medvedev: Mr. President, dear Ukrainian friends and colleagues, ladies and gentlemen,
When we initially met with Mr. Yanukovych after his inauguration, he said gas prices and financial and investment resources were the key to making the economy work. As a result, we really did come to an unprecedented agreement on providing additional financial resources for our Ukrainian partners in the long term. These resources consist in providing gas price discounts set forth in the agreement that we have just signed: our Ukrainian partners will receive a $100 discount on gas price if it exceeds $330 per 1,000 cubic meters, or a 30% discount of the contract price if it is less than $330.
Russia needed certainty on the issue of its naval base lease. This certainty has been achieved: we have signed an agreement that extends the Russian naval presence on Ukrainian territory for 25 more years, with an option of an additional five-year extension if neither party decides to terminate the agreement. |
February 22, 2012 |
President of Russia Dmitry Medvedev Meeting with Chairman of Gazprom Alexei Miller |
http://eng.kremlin.ru/... |
Medvedev: Good evening, Mr. Miller. Gazprom is engaged in some major projects, such as Nord Stream. Construction on other projects particularly South Stream. How do things stand on this project, what are the latest events, what has been done, and what remains to be done?
Miller: We have completed the overall feasibility study for this project, which covers the underwater part of the South Stream pipeline as well as its sections in the transit countries in Southeast and Central Europe.
Medvedev: Please tell us what they are, since not everybody remembers.
Miller: They are Bulgaria, Serbia, Hungary and Slovenia, with segments to Croatia, the Republic of Serbia and a pipeline to Greece.
Medvedev: How do things stand right now with our Ukrainian friends? What is the status of our gas cooperation talks?
Miller: The issue has now become even more relevant in the context of the unusual cold wave in Europe at the beginning of February. Our European consumers increased their requests for Russian gas. However, a significant volume of gas transiting through Ukraine did not arrive in Europe.
Medvedev: Why?
Miller: On certain days, as much as 40 million cubic meters of gas remained on Ukraine’s territory, and this certainly caused damage to Gazprom’s finances and reputation.
Medvedev: Do I understand correctly that this means siphoning off gas?
Miller: Our Ukrainian partners took as much gas from the export pipeline as they felt necessary.
Medvedev: In other words, beyond the scope of existing rules and not on the basis of agreements?
Miller: They took as much gas as they felt necessary; moreover, they took gas intended for European consumers, and our Ukrainian partners knew this. They knew the volume intended for Ukraine, in accordance with the ten-year contract in effect between us.
Medvedev: But they did not ask us to increase their volume of supplies during that time?
Miller: On the contrary, Mr. President, at the beginning of this year, our Ukrainian friends had brought up the question of reducing supply volume.
Medvedev: Yes, I remember, from 52 billion to 27 billion cubic meters. And nevertheless, during the abnormal cold wave, they took gas.
Miller: However, during the unusually cold wave, Ukraine was taking gas at the annual pace of over 60 billion cubic meters.
Medvedev: I see. Please look into all these instances within the framework of corporate procedures and civil-law agreements between Gazprom and Naftogaz of Ukraine.
The situation was the same as in previous years. I feel it is a sufficient basis for instructing Gazprom to plan for maximum gas flow capacity in designing and building the South Stream pipeline. What was the volume?
Miller: It was 63 billion cubic meters of gas.
Medvedev: When will construction begin?
Miller: We will launch the construction in December. All the necessary instructions on gas pipeline design based on a 63 billion cubic meter capacity will be given without delay.
Medvedev: Please let our Ukrainian friends know about this position, explain the reasons we are making the corresponding decisions and, of course, continue talks with them on potential gas cooperation, as we discussed with the President of Ukraine recently in Moscow. |
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July 12, 2012 |
Before starting his working visit to Ukraine, on the way from Sevastopol Airport to Yalta, Vladimir Putin made an unscheduled stop at the camp of the Night Wolves Motoclub. |
http://eng.kremlin.ru/... |
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July 12, 2012 |
President Of Russia Vladimir Putin met with President of Ukraine Viktor Yanukovych |
http://eng.kremlin.ru/... |
Yanukovych: Good afternoon, Mr. Putin, It is a great pleasure to welcome you to Crimea. The weather has been a little hot here, but I know that on the way here you have already had an opportunity to chat with your friends, the bikers.
Putin: They are expecting you, too.
Yanukovych: That’s good, I’ll be happy to pay them a visit. I have passed on my greetings to them and said, “Go ahead and meet with the Russian President first, and I will come over later.”
Putin: I told them that the last time we met you suggested that we get on our bikes, remember the old days and ride over.
Yanukovych: We can do that, no problem. Mr. Putin, today will see a very important event in our relations: the [Russian-Ukrainian] Interstate Commission, which you and I have established, has prepared some very important documents, some of which will be signed by the two of us, and the rest by the representatives of our state agencies. |
July 12, 2012 |
Press conference following meeting of the Russian-Ukrainian Interstate Commission |
http://eng.kremlin.ru/... |
Putin: We also spoke about the Russian Black Sea Fleet in Crimea. We briefed our colleagues, and I will later talk with Mr. Yanukovych in more detail about the integration processes in the post-Soviet space within the associations in which Ukraine does not yet participate.
Question: I have a question for both presidents about the documents signed today, specifically, the first two. Regarding the Declaration on Strategic Partnership between Ukraine and Russia, what does this document contain, what is it about? Also, regarding the agreement on dividing the Sea of Azov and the Black Sea, what principles is it based on?
Putin: We see this as a fundamental bilateral document of the kind our countries have not yet had. It really does reflect our cooperation priorities – political cooperation, economic ties in various sectors, and our cooperation in border areas and so forth. Regarding the agreement on the Sea of Azov and the Black Sea, it is not about dividing these seas: we are not about to divide up the Black Sea between us, and will leave the Sea of Azov alone too. The agreement is about definitively demarcating our borders here.
Question: I have a question for the Russian President on the gas sector. Under what conditions would Russia be willing to revise the price formula for gas sales to Ukraine? Kiev has been seeking this for more than two years now.
Putin: Do you remember the words of that book we all love so much, ‘Can I get the chairs in the evening and give you the money in the morning?’ ‘Yes, but the money comes first!’ We have valid signed agreements, above all corporate agreements. |
December 20, 2012 |
News conference of Vladimir Putin |
http://eng.kremlin.ru/... |
Question: Margarita Sytnik, 1+1 channel, Ukraine, special correspondent in Moscow.
Mr. President, Viktor Yanukovych had a visit scheduled for Tuesday, but it was cancelled. On what grounds, what disagreements are there between Ukraine and Russia? And in general now, all negotiations between the two countries are secret, no one makes any comments even though everyone knows that they are discussing Ukraine's accession to the Customs Union and the gas issue. Has anything been agreed in this regard?
Putin: You know, we are not talking about Ukraine’s accession to the Customs Union. |
March 4, 2013 |
President of Russia Vladimir Putin Meeting with President of Ukraine Viktor Yanukovych |
http://eng.kremlin.ru/... |
Putin: I am very happy to see you. Welcome!
Yanukovych: Thank you, Mr. President, for your invitation and for the opportunity to meet and touch base, as they say, because time is running. Since our last summit in Yalta, nearly all the decisions we made have started being carried out. We will need to identify the steps for the development of economic integration, cooperation between Ukraine and the Customs Union.
Question: Mr. Putin,excuse me, but everyone would very much like to know, what kind of integration with the Customs Union will you be talking about, as Mr. Yanukovych said? Will it be about Ukraine joining the Customs Union?
Putin: Mr. Yanukovych touched on this topic on his own initiative. We will surely discuss it.
Yanukovych: I can elaborate. Indeed, Mr. Putin and I have been discussing this topic extensively, constantly. |
September 4, 2013 |
http://eng.kremlin.ru/... |
Interview to Channel One and Associated Press news agency |
Putin: You know, no matter what happens, and wherever Ukraine goes, anyway we shall meet sometime and somewhere. Why? Because we are one nation. |
October 24, 2013 |
Press conference following Supreme Eurasian Economic Council meeting |
http://eng.kremlin.ru/... |
Question: A question for President Putin. Please answer as concretely as possible: are you for or against Ukraine signing the association agreement with the European Union?
Putin: We are not for or against it. That is none of our business. It is the sovereign right of the Ukrainian people, the Ukrainian leadership represented by the President, Parliament and Government.
Question: Then please answer directly. After signing this association agreement, would it be possible for Ukraine to join the Customs Union? And if not, then why?
Putin: No, it would not be possible. It would be impossible because that association assumes the creation of a free trade zone between the European Union and Ukraine. Within the framework of that zone, Ukraine takes on the responsibility to implement the European Union’s trade rules and trade policy within its territory. |
Less than a month later, on November 21, 2013, Yanukovych caved to Putin's pressure and cancelled the EU Affiliation Agreement. That night, the protest demonstrations began at Maidan. They escalated with the heavy-handed response of the Yanukovych government.
Why would a nation that spans 9 time zones want a territory the size of Massachusetts? Location? It already had obtained a lease for its naval base that was good until 2042. The prize Putin wants is Ukraine, not Crimea.
What about the chronic allegations of natural gas misappropriation? For Ukraine to move forward, to form the civil society envisioned in the EU Affiliation Agreement signed today, it needs a transparent law enforcement investigation and judicial process. It's time to clean house.