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UNCLAS SECTION 01 OF 02 KIEV 005150 
 
SIPDIS 
 
STATE FOR EUR/UMB AND EUR/PPD 
 
E.O. 12958: N/A 
TAGS: KPAO EPET ENRG PREL PGOV RS UP
SUBJECT: UKRAINE: PRESS COVERAGE OF THE GAS DISPUTE WITH RUSSIA 
 
 
¶1. Summary: Most Ukrainian media have described Russia's 
intention to hike Ukraine's gas prices as politically motivated. 
Many press reports also highlighted the assertion from Ukrainian 
leaders that this is a step in Ukraine's transition from 
patriarchal to pragmatic relations with Russia.  Depending on 
the political leanings of the media outlet, differing, yet 
oftentimes predictable, press coverage emerged on who is to 
blame for the crisis, what the impact will be on Ukrainian 
energy policy, and who will gain in the upcoming parliamentary 
elections as a result of the gas price increase.  End summary. 
 
WHO STARTED THE GAS DISPUTE - THE BLAME GAME 
 
¶2. Many news outlets, including the pro-Yushchenko 5th Channel 
TV station and Donetsk Ukrayina, Donetsk-based oligarch Rinat 
Akhmetov's TV station, cited former Prime Minister Viktor 
Yanukovych's statement on December 19 that the Ukrainian state 
oil and gas company Naftohaz Ukrayiny is to blame for the 
dispute for first proposing the price change in July 2005. 
These reports also quoted former Prime Minister Yuliya 
Tymoshenko criticizing the "intermediaries for destroying the 
balance of Russian-Ukrainian gas." She stated that the natural 
gas issue would disappear with the "elimination of corruption 
and shadow schemes." 
 
¶3. The 5th Channel televised Naftohaz Ukrainiy's rebuttal on 
December 21 stating that in March 2005 Russia proposed revised 
rates for the transport of gas across Ukraine.  Naftohaz said 
that the opposition Party of Regions was simply twisting the 
facts, trying to gain political dividends in the run-up to the 
parliamentary elections. 
 
¶4. Ukrayinska Pravda, a popular news website, on December 12 
blamed previous administrations for the conflict.  It stressed 
that the "numerous 'successful understandings' brokered by 
Kravchuk-Kuchma should have been substituted by alternative 
sources of energy and energy conserving technologies.  Had this 
been accomplished, the issue would not have arisen in the first 
place." 
 
MANY PRESS DESCRIBE GAS DISPUTE AS POLITICALLY MOTIVATED 
 
¶5. Many Ukrainian TV reports described the proposed Russia gas 
price hike as politically motivated. "It is no secret that 
Russia uses its energy resources for ensuring political loyalty 
of some countries." (INTER, Podrobitsi Tyzhnya, 12/18/05)  "With 
the gas price Russia strikes back in response for the change of 
foreign policy priorities [by Ukraine]." (STB, Vikna-Novyny, 
12/16/05)  "Member of Parliament Yuri Klyuchkovsky says Russia 
is using gas talks as an instrument of political pressure on 
Ukraine." (UT-1, Novyny, 12/19/05) 
 
¶6. The "orange" print media (Ukraina Moloda, Dzerkalo Tyzhnya, 
Vechernie Vesti) portrayed the Russian policy as an attempt to 
punish Ukraine for a 2004 presidential election that 
contradicted Moscow's will. 
 
OPPOSITION MEDIA BLAME DISPUTE ON YUSHCHENKO GOVERNMENT 
 
¶7. The opposition papers (Segodnya, Kievskie Vedomosti, 2000 
weekly) lamented the rise of gas prices, particularly by saying 
how this increase would hurt private households.  They viewed 
the Russian position as a given, dismissed any possibility of 
Ukraine prevailing with its arguments, and blamed the Ukrainian 
government for its inability to negotiate effectively.  These 
newspapers also claimed that the Ukrainian government provoked 
Russia by pursuing an anti-Russia policy.  Segodnya stated on 
December 16, "The closer to NATO, the more expensive is the 
gas." 
 
¶8. December 16 and 19 TRK Ukraina TV reports blamed the 
Yushchenko team for the crisis.  The programs quoted Vyahceslav 
Boguslayev, General Director of Motor Sich and Party of Regions 
candidate; Lyubov Slivka, a Russian parliamentarian; and Adam 
Martynyuk, a Communist Party parliamentarian and Rada Vice 
Speaker, strongly criticizing Naftohaz Chairman Oleksey Ivchenko 
for poor negotiations.  They blamed him and the political forces 
behind him for the dispute. 
 
¶9. Calling into question Ukraine's low gas prices, the highly- 
popular, opposition-leaning Inter television stated on December 
19 that the "Ukrainian population pays the lowest price for gas 
in Europe, thirty-six U.S. dollars per thousand cubic meters. 
It costs more even in Russia - forty-four dollars for the same 
amount of gas."  The report also stated that "Kyiv had itself 
offered last spring to go over to market prices, but began to 
backpedal shortly afterwards."  Russian Ambassador to Ukraine 
Viktor Chernomyrdin also said on the 5th Channel on December 16 
that "Russians are paying more for gas than Ukrainians." 
 
FROM PATRIARCHAL TO PRAGMATIC RELATIONS 
 
KIEV 00005150  002 OF 002 
 
 
 
¶10. Many media reports (Inter, Unian, ICTV, Radio 1, Glavred, 
and UT-1) featured quotes from top Ukrainian leaders -- 
President Viktor Yushchenko, Prime Minister Yuriy Yekhanurov, 
and Foreign Minister Borys Tarasyuk -- stating that politics 
should be put aside in this discussion and a pragmatic approach 
should become the basis of Ukrainian-Russian economic 
cooperation. 
 
¶11. The 1+1 television channel, Unian, and UT-1 discussed the 
need for Russia to uphold its bilateral agreement with Ukraine 
on the Black Sea Fleet deployment.  Foreign Minister Tarasyuk 
called it "inadmissible to link a possible revision of terms of 
the deployment in Crimea and the gas price increase."  The 
reports stated that Russia failed to meet its commitments under 
bilateral agreements by polluting the Crimean coast, using land 
plots improperly, and failing to return equipment.  As a result 
and due to the movement of Kyiv and Moscow to more pragmatic 
relations, the Ukrainian officials argued that it was time to 
address these problems. 
 
CRISIS TO PROMOTE GREATER ENERGY EFFICIENTCY AND INDEPENDENCE? 
 
¶12. The centrist Den newspaper speculated that the gas crisis 
would strengthen Ukrainian independence by forcing an urgent 
energy-efficiency program and a departure from energy dependence 
on Russia. The 1+1 TV news report of December 18, however, 
criticized the authorities for not setting up the proposed 
energy saving agency earlier. 
 
IMPACT OF THE PRICE INCREASE ON THE UPCOMING ELECTIONS 
 
¶13. The "orange" media believed that the energy crisis would 
diminish the opposition Party of the Regions' popularity, since 
energy-inefficient industrial giants in Eastern Ukraine would be 
the hardest hit with the price hike.  Many press reports, 
including the news website Glavred, speculated that the Our 
Ukraine Bloc would benefit from the dispute because the row 
overshadows reports about in-fighting and corruption within the 
Yushchenko team.  Russia's hard-line stance may also be a 
unifying force for the entire Ukrainian nation.  The programs 
argued that if used skillfully, the gas crisis could work to 
President Yushchenko's advantage. 
 
¶14. Conversely, the "blue" opposition media predicted gains for 
the opposition in the run-up to the parliamentary elections 
because of the government's anticipated failure to resolve the 
crisis in a satisfactory manner. 
 
Herbst