Rus News Journal

In Moscow petrodollars

negotiations

On Saturday of premieres have seemed to Victor Yanukovych - minister Michael Fradkov has met the prime minister of Ukraine Victor Yanukovych. In spite of the fact that the meeting had character of simple acquaintance of two prime ministers before coming in the beginning of July session intergovernmental Russian - the Ukrainian commission, mister Yanukovych has already counted up that from Moscow it carries not less than $800 million
First of all Michael Fradkov and Victor Yanukovych during the meeting have discussed cancellation of withdrawals and restrictions in trade relations of Russia and Ukraine. We will remind that Russia and Ukraine have signed the agreement on free trade still on June, 24th, 1993. On October, 4th, 2001 the contract has been added by the report on which of a mode of free trade were withdrawn Ukrainian sugar, tobacco products and spirit, and also Russian sugar, tobacco and confectionery. To cancel import duties for tobacco products two countries in trade among themselves plan since 2006, for sugar - since 2007. Ukraine has agreed to exclude withdrawal from the agreement of the Russian confectionery in 2004. The Russian side is ready to deliver duty-free spirit from Ukraine since 2012. Besides, since July, 1st, 2001 in Russia the rule on which importers pay the VAT in that country where deliver the production operates. But this rule does not extend on the Russian oil and gas. Ukrainians want to receive for a long time the VAT for energy carriers independently.
before the beginning of negotiations Michael Fradkov has declared that ratification of the agreement on creation of uniform economic space substantially promoted a sustainable development of trade relations between Russia and Ukraine. As he said, ahead - the concrete actions connected with realisation of this agreement . Victor Yanukovych has there and then demanded the: The next step is a creation of a zone of free trade without withdrawals and restrictions .
Results of a premiere have brought on - to a miscellaneous. Michael Fradkov has informed that prime ministers have discussed problems which first of all become a consideration subject at session of the intergovernmental commission in the beginning of July, 2004. As he said, a question on withdrawals from the agreement on free trade it is close to its permission and we should liquidate all it . Victor Yanukovych there and then declared that schedules of withdrawal from a mode of free trade are necessary for reducing, having cancelled them not to 2010 - 2012, and much earlier . Michael Fradkov did not begin to specify, what withdrawals - tobacco less essential to the Russian budget and caramel or oil having paramount value and gas - are meant by its Ukrainian colleague.
nevertheless Victor Yanukovych has obviously regarded results as a pre-election gift. (In Kiev it is already declared that mister Yanukovych becomes one of candidates on a presidential post.) Of the White house of the correspondent convinced that at this meeting about any support of candidate Yanukovych of speech did not go. Victor Yanukovych on road from Moscow to Kiev has drawn an opposite conclusion and has counted up that carries from Moscow of promises a minimum on $800 million As he said, first of all Moscow will transfer to Kiev the right to raise the VAT for the Russian oil and gas, and will compensate these losses by growth of mutual goods turnover after creation of a zone of free trade within the limits of EEP the four the CIS. Nevertheless it is already clear that in 2004 of the VAT remains in Russia - all incomes of oil and gas in the Russian budget this year are distributed. The budget of 2005 is yet ready, but the Russian Ministry of Finance hardly so will simply give incomes as next year it is necessary to compensate unified social tax reduction. Besides, the effective control mechanism behind return of the VAT paid at import to Russia does not exist. Minister of Finance Alexey Kudrin suggested to enter the VAT - accounts, but it and has not occurred. In case of cancellation of the VAT for oil and gas in trade with Ukraine simply there will be one more tax hole.
PETER - netreba