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Russian ambassador warns of cost to Kiev of reneging on base deal

© RIA Novosti . Anton DenisovMikhail Zurabov
Mikhail Zurabov - Sputnik International
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The Russian ambassador to Kiev has dismissed the chances of Ukraine backing out of the deal on Russia's lease of a Crimean naval base, saying such a step would convert some funds received by Ukraine into state debt.

The Russian ambassador to Kiev has dismissed the chances of Ukraine backing out of the deal on Russia's lease of a Crimean naval base, saying such a step would convert some funds received by Ukraine into state debt.

"Denunciation of the agreement would automatically be accompanied with the conversion of funds that Russia now transfers as payments towards the future rent [of the Black Sea Fleet base], into Ukrainian state debt," Mikhail Zurabov told journalists after Russian-Ukrainian talks in Sochi on Friday.

Moscow and Kiev agreed on April 21 to extend Russia's use of the Black Sea Fleet's main base in the Crimean port of Sevastopol for 25 years beyond its original 2017 expiration. In return, Ukraine received an immediate discount on Russian gas.

Zurabov said it was a "political or diplomatic victory" for Ukrainian President Viktor Yanukovych that although the rent paid by Russia would not rise until 2017, Ukraine was benefiting already.

"The arrangements are such that they [the Ukrainians] have the right to receive funding for the economy right now," the ambassador said, adding that this would allow Ukraine to develop the economy in the coming years.

"It was the best decision for them," Zurabov said, suggesting that the deal could make Ukraine a major energy player and allow the country to develop its chemical industry.

The ambassador said there was little chance of Kiev reneging on the agreement, warning that such a step would seriously damage its international reputation.

"A denunciation is of course possible, but we must bear in mind that in this case the country becomes a rogue state. And this is why it seems to me a very difficult and undesirable option for any country," Zurabov said.

 

SOCHI, May 1 (RIA Novosti)

 

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