Ukrainian government unilaterally denunciates agreement with Vanco (Update)

The Cabinet of Ministers made decision about a unilateral denunciation of the agreement with Vanco on distribution of production.

According to an UNIAN correspondent, First Deputy Prime Minister of Ukraine Oleksander Turchynov claimed this to journalists today.

“The President’s decree openly indicates corruption of higher officials. The President wanted, by means of his decree, to force the government to return Vanco its license on Black Sea Shelves exploration. It was one of the most large-scale schemes, which was fulfilled in Ukraine. The Cabinet of Ministers has made a decision to unilaterally denounce the agreement with Vanco, despite the front and the attempts to use the Prosecutor’s General Office, which, after a meeting with the President, decided to appeal against the government’s decision to cancel the license”, O.Turchynov said.

At the same time, the First Vice Prime Minister referred to provisions of the Ukrainian Constitution, in line with which citizens do not have to fulfill criminal decisions.

O.Turchynov believes that the decision to return the license on exploration of strategic gas reserves to the off-shore company was a direct crime.

“I hope the American side, in its turn, will carry out an investigation into the corrupted scheme, by means of which they forced the American company to perform a role of an intermediary and to cover shadow economical interests”, O.Turchynov said.

According to the government`s press-office, the government`s resolution on Vanco reads as follows:

1. To terminate Ukraine’s participation in “Agreement on distribution of carbohydrates extracted within the boundaries Prykerchenska part of the Black Sea continental shelf the between the state of Ukraine and Vanco International Ltd. company” (hereinafter – Agreement).

For the Ministry of Environmental Protection, Justice Ministry, Finance Ministry, Economics Ministry, Fuel and Energy Ministry, Ministry of Foreign Affairs to undertake proper actions to ensure implementation of the mentioned decision.

 2. To abolish a resolution of the Cabinet of Ministers of Ukraine of 3 October 2007 №828 “On signing an Agreement between the Cabinet of Ministers of Ukraine and Vanco International Ltd. company on distribution of carbohydrates extracted within the boundaries of Prykerchenska part of the Black Sea continental shelf.”

For the Ministry of Environmental Protection, Justice Ministry, Economics Ministry, Fuel and Energy Ministry, Secretariat of the Cabinet of Ministers to report at the next Gov’t session concerning legal grounds of annulment of other decisions of the Cabinet of Ministers connected to concluding of the Agreement, notably, concerning the results of the contest for concluding an agreement on distribution of carbohydrates extracted within the boundaries of Prykerchenska part of the Black Sea continental shelf and validity of putting up for the auction a plot over 12 thousand square kilometers.

For the Ministry of Environmental Protection, Justice Ministry, Finance Ministry, Ministry of Internal Affairs to submit to the Cabinet of Ministers a project of an appeal to the Prosecutor General concerning competence of actions of high officials involved in this deal.

For the Justice Ministry together with the Ministry of Environmental Protection to undertake all necessary measures with regard to protection of Ukraine’s interests in case of instituting procedures pertaining to the issues concerned with cessation of Ukraine’s participation in the mentioned Agreement.

As UNIAN reported earlier, in 2006 Vanco International Ltd. Won the first open contest and signed an agreement with the Cabinet of Ministers of Ukraine in 2007 on the exploration of the Black Sea Shelf.

Yulia Tymoshenko’s government pulled Vanco’s license to explore a vast 12,900km field off the Crimean peninsula, citing concern that Gazprom could, through partners, gain a hidden interest in the project that was originally intended to diversify energy supplies by boosting domestic production. Ms Tymoshenko also suggested past governments might have compromised Kyiv’s “national interests” by yielding such a large field and unjustifiable proceeds to a single group.

On May 20 President of Ukraine Victor Yushchenko signed a decree, with which he confirmed the decision of the National Security and Defense Council of Ukraine on creating an Inter-Department working group to probe into legality of the agreement on Black Sea Shelf exploration, concluded between the state of Ukraine and Vanco company. Raisa Bohatyryova headed the group.