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Gasoline Crisis in Ukraine: Kiev blames Moscow

May 16 2005

In Ukraine, the ongoing conflict between the Cabinet and Russian oilmen. Kiev is ready to go to extreme measures and reduce the profitability of oil refining up to zero.

In retail, there is a shortage of fuel. Even in Kiev at many gas stations to stop selling 95-second and 92-octane gasoline. In the regions, the situation with fuel is even worse.

Ukrainian Prime Minister Yulia Tymoshenko is trying to cope with rising legislative methods. Retail price on the 95 th is set at a fixed level of 59 cents. In the rising price of gasoline Tymoshenko prefers to see the machinations of the Kremlin . On Sunday, she said that Moscow, boosting oil prices, is trying to suppress the growth of economy of Ukraine. "Russian oil traders would like to receive profits, and set prices much higher, because they are monopolists, and think they can unscrew the hands of Ukraine", - explained the Prime Minister for his position.

Reduce the influence of Russia Yulia Tymoshenko intends using Caspian oil. Kiev has already begun to seek alternative suppliers of "black gold", although no contracts to sign so far failed.

While the Ukrainian prime minister in favor of strict regulation of the market, other members of government agree: the price of gasoline will be reviewed. This statement is made by the Minister of Fuel and Energy Minister Ivan Plachkov. The head of the Ministry of Economy Serhiy Teryokhin suggested a compromise - to fix prices only for the cheapest petrol and diesel fuel for agriculture. Owners of expensive cars, in his opinion, be able to pay for fuel with a bit more than now, according to Russian news service.

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