Thursday, May 22, 2008

US Ambassador urging Ukraine Government to revise decision on breaking contract with Vanco

US Ambassador to Ukraine William Tailor was greatly disappointed by the Cabinet of Ministers' move to break the production distribution contract with US company Vanco, reads the ambassador's statement.

Tailor voiced hope that a direct talk between the two parties could remove the misunderstanding, on which the conflict was based.

As reported, the Ukrainian Cabinet unilaterally dissolved the agreement on distribution of products with US company Vanco, which was signed in 2007 on the development of the Kerch section in the Black Sea shelf.

On May 12, Ukrainian Prime Minister Yulia Tymoshenko announced withdrawal of the special permit for the use of the Black Sea continental shelf resources from Vanco Prykerchenska Ltd. She says Vanco violated the production sharing law, in keeping with which the state has the right to 30% of the output. Meanwhile, "this time the state would have just 10%, and Vanco all the rest," the Prime Minister said.

Vanco Prykerchenska Ltd. is registered on British Virgin Islands. Its statutory capital is USD 12,000, Tymoshenko said adding the company formally belongs to four students, girls born in 1975 - 1983.