Ukrainian premier plans to discuss VAT cancellation during Russia trip
Rivne, 11 June: Prime Minister Viktor Yanukovych will visit St Petersburg to take part in an international economic
forum on 15 June.
During the forum, Yanukovych will discuss with the Russians the issue of cancellation of value added tax on Russian
oil products that are exported to Ukraine. Yanukovych said this at a news conference in Rivne on Friday.
Yanukovych said that the Ukrainian side's participation in the forum has already been agreed with Russian Prime
Minister Mikhail Fradkov.
Yanukovych did not rule out the possibility that he would go to Moscow after the forum to continue discussion of the
cancellation of VAT. "Perhaps we will consider some of the issues in St Petersburg and some in Moscow," he
said.
He said it was important for the Russians to cancel VAT since it would allow the price of Russian oil products
exported to Ukraine to be cut by 12 per cent.
Asked whether Ukraine is ready to consider during talks on this topic the Russian offer "cancellation of VAT in
exchange for the zero option on the right to the property of the former Soviet Union", Yanukovych said that this
solution is unacceptable for Ukraine. [Under the zero option agreement, which has not been ratified by Ukraine, Russia
will inherit all the Soviet Union's foreign assets and liabilities.]
"We will never drop our claim to our foreign property," he said.
However, Yanukovych also noted significant progress by the sides in the negotiations on this problem.
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