Interfax's Interview

 Do you think Ukraine will manage to do all that is required for its accession to the World Trade Organization this year? Should Russia and Ukraine’s steps to join the WTO be synchronized?

 Membership of the World Trade Organization ranks among Ukraine’s foreign trade policy priorities, since it opens the way to larger foreign investment and lifts barriers obstructing Ukrainian commodities’ access to the markets of industrialized states.
 However, it is important to note that, accession to the world trade community with some 150 members is not a race, but an extremely serious issue, which requires meticulously calculated steps.

 While adopting the laws required to complete this procedure, one should take all problems into account to minimize negative consequences.
 Concerning the schedule, it could be discussed after all these issues are settled.
 We shall strictly observe the plan of mapped out measures and want to submit the issue of Ukraine’s membership of the WTO to this organization’s General Council in February 2007.

 Russian Prime Minister Mikhail Fradkov said on Tuesday that Russia’s interests must be taken into account as Ukraine is broadening cooperation with NATO and the European Union, in order to make Ukraine’s cooperation with Russia more effective.

 Relations with Russia must be based on mutually advantageous cooperation and mutual respect for national interests. What is needed here is a clear position by the state on all aspects of cooperation, predictability and skills to achieve a balance of interests.

 I have said earlier that economic interests and commonsense must triumph in foreign policy.

 The main principle of our policy remains unchanged: we have acted and will act based on Ukraine’s national interests.

How far has the idea to form an international gas pipeline consortium progressed? Will other parties be involved in the consortium – Russia, or the European Union?

 We have returned today to the model of gas pipeline consortium that was defined in the 2002 agreement and which confirmed the participants: Ukraine, Russia and Germany.

The involvement of new members is not contemplated.
 Regarding the timeframe, inter-governmental talks are underway. Decisions will be made after they are over.

 Now about the modernization of Ukraine’s gas pipeline system. We are thinking of ways to increase oil and gas supplies to European countries. Therefore, modernization of the gas pipeline system is necessary. It will help increase annual gas transits through Ukraine to 60 billion cubic meters.

 The work to upgrade the gas pipeline system will involve EU countries, Russia and Caspian states, and it will be transparent.

Let’s discuss political problems now. You said recently that the principles of Ukraine’s domestic and foreign policies must be altered. When will a relevant bill be submitted to parliament?

 I think the laws governing our domestic and foreign policies have become obsolete and must be adjusted with due account of the constitutional reform and re-distribution of powers between the executive structures.

 A bill on the principles of domestic and foreign policies has been drafted by the three factions of the coalition: the Party of Regions, the Socialist Party and the Communist Party.

 The bill is expected to be debated by the government soon.
 
 What are the country’s privatization plans for the rest of the year and for 2007? Will Luhanskteplovoz locomotive plant, the Nikopol Ferroalloys Plant and Ukrtelecom be privatized?
 
 In 2006, the government backed the State Property Fund’s proposal to sell more than 580 properties. Some of them will be offered for sale this year and others in 2007.

 A list of companies, whose privatization is currently restricted by law, but which will be offered for sale, is expected to be approved simultaneously with the adoption of the 2007 budget.

 Court rulings passed recently rule out the privatization of Luhanskteplovoz and the Nikopol Ferroalloys Plant.

 The privatization of Ukrtelecom was regulated by a law suspended at the request of the Yulia Tymoshenko government. Its privatization process could resume after the parliament and government make the relevant decisions.

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