KHERSON - Chairman of Kherson Regional State Administration Andriy Putilov suggests establishing market-based relations between Ukraine and the temporarily occupied territory of Crimea when it goes about the supply of industrial water to the peninsula.
“Russia sells us gas at an average European price, though in fact we pay for it more than some other European countries do. We’re told that these are normal market-based relations. As we know, there are no contract relations between Ukraine and the temporarily annexed Crimea when it goes about the supply of water by the North Crimean Canal. Yet, such relations should be created,” he said on the local Skifia TV Channel on Nov. 13, the administration reported on its website.
In his words, Kherson Oblast funnels about 1 billion cubic meters of industrial water into Crimea every year, and one cubic meter of water in Europe costs 1 euro on average.
“Thus, Ukraine, and namely Kherson Oblast, could earn much for its budgets,” he said.
He said that it is possible now to bring relations with Crimea to a new level, as a new law became effective on Sept. 27, 2014, to create a free economic zone, ‘Crimea’, and regulate economic activities on the temporarily occupied territory of Ukraine, under which subject to declaration are all commodities and cargo that cross the administrative border between Kherson Obast and Crimea.
Putilov says that according to rough estimates, one cubic meter of water should cost at least Hr 13, as this is its net cost.
The settlement of this issue requires political engagement, and depends on the will of the president, the government and the parliament, Putilov added.
Kherson Regional Administration for its part works now with customs agencies to elaborate regulations for the declaration of water and its legal sale to Crimean consumers, and will submit its proposals to the Ukrainian government.
As was reported, the water supply from Ukraine to Crimea through the North Crimean Canal was terminated in April 2014. Crimea’s debt to the canal management for water supplies in 2013 totaled Hr 1.7 million.
