Vanco Prykerchenska Ltd. lays down terms to Tymoshenko's government

Vanco Prykerchenska Ltd. (the British Virginian Islands) claims it may suspend the arbitration procedure if there is a “significant progress” in its conflict with the Ukrainian government.

According to an UNIAN correspondent, Vanco Prykerchenska president Jim Bown claimed this to a press conference in Kyiv today.

At the same time, he added he does not see any reasons hampering to start a dialog without suspending the arbitration.

According to him, Vanco Prykerchenska Ltd. is not ready to carry out additional talks on distribution of production.

In his turn, Vanco Prykerchenska’s lawyer Oleh Alyoshyn, a partner of Vasyl Kysil and Partners lawyer firm, claimed that the Cabinet of Ministers of Ukraine has already received a copy of Vanco Prykerchenska’s appeal with all documents enclosed from the Stockholm Chamber of Commerce. The Ukrainian government was proposed to prepare its first answer and to appoint its arbiter by August 13.

O.Alyoshyn noted that recently Vanco Prykerchenska Ltd. Got received information that the Ukrainian side recalls its proposals concerning an amicable settlement of the conflict with the company. At the same time, he added that Vanco Prykerchenska Ltd. never received any proposals to start talks.

As UNIAN reported earlier, on August 5, 2008, the Ukrainian side claimed it recalled its proposals on peaceful settlement of the conflict with Vanco Prykerchenska Ltd., because the Ministry of Justice, which was commissioned to hold negotiations with the company on behalf of the Ukrainian government, received an official confirmation that the company filed for international arbitration with Ukraine at the Stockholm Chamber of Commerce. According to the Justice Ministry of Ukraine, the company did not respond to the official written address of Ukraine with a proposal of peaceful talks, which was sent to the company as early as a month ago. Considering this facts, the Ukrainian side recalls its proposal of talks, and will give its answer within frames of the arbitrary procedure in the nearest future.

Earlier Vanco Prykerchenska Ltd. said it had filed for international arbitration with Ukraine, after the government cancelled a 30-year license to explore and extract oil and gas in the Black Sea shelf.

Prime Minister Yulia Tymoshenko has said Vanco broke conditions of the agreement, that the company structure was unclear and has voiced concern that it could sell on the licenses to Russia`s gas export monopoly Gazprom. Vanco has denied the allegations.

Industry sources have said that within Vanco`s company structure in Ukraine lies DTEK, an energy group that is part of the vast empire of firms belonging to Rinat Akhmetov, Ukraine`s richest man and a leader in the opposition Regions Party.

The contract allowed Vanco to explore and extract in the Prykerchensky block - an area of just under 30,000 square km at the northern end of the Black Sea and 13 km offshore.

The initial contract was won by Vanco Energy in early 2006.