Russian expert promises that Ukraine will save billions from joining the Common Economic Space

12:21, 09 December 2010
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Ukraine might save billion of dollars after joining the Common Economic Space.

This statement was made by the Head of the Group for economic policies of the Russian Embassy in Ukraine Alexey Urin at the round table conducted by Gorshenin institute .

In particular he said that in the upcoming days hight level officials of the Customs Union between Russia, Belarus and Kazakhstan would meet to sign the documents setting the ground for creating the Common Economic Space.

"We all hope that the fundamental documents that create a legal basis for  the CES will be signed", Mr. Urin said. He added that in this case the parties are discussing the creation of a unified economic mechanism between the four countries that would enter into effect January 1st, 2012.

According to Mr.Urin one of the agreements that the parties are hoping to sign is an agreement as to the "rules of access to natural reserves monopolies in the sphere of gas transport, gas transit systems and the foundation for establishing price and tariffs policies".

The expert says that the unified price on gas can come into effect as early in 2015 and may be established at 150 dollars for one thousand cubic meters. The Russian Embassy official notes that it is 100 dollars less than the price Ukraine is currently paying after all the mark downs. "For Ukraine It means 3-3.5 billion dollars in annual savings", says Mr.Urin. According to him, implementation of unified prices on oil products will also allow Ukraine save up to 2 billion dollars. 

"There`s nothing to talk about here. Ukrainian economy will only benefit from this situation, he said.

However, attorney-at-law, expert on international trade Sergey Kozyakov thinks that Ukraine should focus on developing its own gas reserves namely on the Black Sea Shelf rather than entering the Common Economic Space.

Also he thinks that Ukraine by 2015 might advance in developing new technologies, namely in shale gas production as it`s been done in the US and Europe.

As reported earlier by UNIAN, on November 19th, after the meeting of the Heads of CIS countries Ukrainian Prime Minister Azarov announced that Ukraine was not conducting any talks as to joining the CES.

UNIAN: the Presidents of Russia, Belarus and Kazakhstan during their meeting in Almaty on December 19th, 2009 agreed to create the CES by January 1st, 2012.

In March 2010, President of Ukraine Viktor Yanukovych announced that Ukraine - being a WTO member - would join the CES only in accordance with the demands set by the WTO and that means that the rest of the CES potential members have to join the WTO.

Russia, Belarus and Kazakhstan which on July 5th announced the entry into effect of the Customs Union intend to join the WTO on conditions agreed upon by all parties.

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