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Ukrainian opposition angered by possible Gazprom-Naftogaz deal - Russian press

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A proposed merger between the two largest gas companies of Russia and Ukraine has caused a surge of criticism among the Ukrainian opposition, the Russian press said on Tuesday

A proposed merger between the two largest gas companies of Russia and Ukraine has caused a surge of criticism among the Ukrainian opposition, the Russian press said on Tuesday.

Russian Prime Minister Vladimir Putin proposed on Friday the creation of a joint holding between Russia's energy giant Gazprom and Ukraine's gas monopoly Naftogaz. His Ukrainian counterpart Mykola Azarov called it "an impromptu move" on Putin's part but pledged to consider the proposal.

The Ukrainian opposition was quick to criticize the idea.

"Attempting to solve the gas row like this is like curing a headache by splitting it into four," Russian news site gzt.ru quoted deputy head of the Ukrainian parliament's fuel committee Mikhail Volynets as saying. "The creation of the joint venture means the de-facto acquisition of Naftogaz by Gazprom and thus the loss of Ukrainian energy independence."

Member of the Yulia Tymoshenko Bloc party Volynets said Putin's proposal has nothing to do with gas prices or European supplies.

"Putin wants to take advantage of the political situation in Ukraine and Yanukovych's [political] weakness...Don't forget his initiative in the nuclear energy sector" Volynets told Gazeta.ru.

Earlier on Friday, chief of Russian nuclear corporation Rosatom Sergei Kiriyenko said Russia and Ukraine may create a joint nuclear venture based on Russia's Atomenergomash and Ukraine's Turboatom companies.

Volynets said attempts to take control of Ukrainian atomic energy plants would lead to a loss of sovereignty and cause "the people to rise".

Russian business daily Vedomosti quoted Putin's spokesman, Dmitry Peskov as saying that Putin's proposal has more 'pros' than 'cons'. Peskov said if Gazprom merges with Naftogaz Ukraine's transit network will be modernized and their use will be guaranteed.

Vedomosti quoted an independent Ukrainian expert Valentin Zemlyanskiy as saying that Gazprom is ready to provide Naftogas with the investment it needs. If Ukraine refuses Russia's proposal after the launch of the South Stream project, a gas pipeline, which is to transfer Russian gas to Europe under the black sea, Ukraine's gas industry will 'die.'

Vedomosti said the European Union has not yet interfered with the deal.

"Mergers are the affair of the sides involved," Vedomosti quoted EU Energy Commissioner, Marlene Holzner as saying. She added that Ukraine's most important objective was to continue reforming its gas industry.

During the fourth Europe-Ukraine Forum, held in Kiev on April 26-28, Russian parliamentary Deputy Evgeniy Fedorov proposed the creation of a united economic space from Russia's far eastern port of Sakahlin to the eastern Ukrainian city of Kharkov.

"I don't care what the country will be called - whether it's Russia, Ukraine or Kievan Rus," Russian business daily Kommersant quoted Fedorov as saying.

Fedorov said the unification should encourage industrial and technological development and improve people's quality of life.

MOSCOW, May 4 (RIA Novosti)

 

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