Ukraine extends lease for Russian naval fleet

The presidents of Russia and Ukraine signed an agreement Wednesday that would leave Russia’s Black Sea Fleet in its historical base on the coast of neighboring Ukraine for decades to come.

The deal is a blunt signal of Ukraine’s return to Moscow’s good graces since the inauguration in February of pro-Russian President Viktor Yanukovich, squashing the longtime rallying cry of the country’s pro-Western politicians to evict the Russian naval base.

“This document symbolizes our friendship,” Russian President Dmitry Medvedev told reporters after meeting Yanukovich in the Ukrainian city of Kharkiv.

Under the new deal, the Black Sea Fleet will stay in its base on the Crimean peninsula for an additional 25 years past the old lease’s expiration in 2017.

In exchange for the prolonged stay, Russia’s state gas monopoly, Gazprom, agreed to slash export duties on natural gas sold to cash-strapped Ukraine. The discount would amount to $100 for every 1,000 cubic meters (about 1,300 cubic yards) of gas, or a 30% decrease in cost if the price of that amount of natural gas falls below $330, Gazprom officials said.

Ukraine has agreed to slash the rent cost of the Black Sea Fleet’s base. The amount of the reduction was not known.

The package of deals was a reversal of some of the most notable events to emerge from Ukraine’s so-called Orange Revolution against Russian influence, which started in 2004 and was declared dead with the election of Yanukovich.

In their fervor to steer away from Russian influence, Ukraine’s pro-Western rulers in recent years had pushed for membership in the European Union and the North Atlantic Treaty Organization. Moscow, meanwhile, seethed over the loss of clout in a neighbor many Russians regard as a rightful part of their country.

The tensions created wintertime gas shutdowns, with Moscow accusing Ukraine of failing to pay its bills and with Russia also stopping gas flowing to Europe in pipelines passing through Ukraine.

On Wednesday, the message from Russia was clear: Ukraine can be strong and functional again, can take shelter under Moscow’s military umbrella and serve as an effective fuel conduit to Europe, but only because Ukrainian leaders are now playing by Russia’s rules.

“This should be a partnership,” Medvedev said, “not a declaration of intent.”

Widespread anger over Ukraine’s economic woes helped to hurtle Yanukovich into office, with many Ukrainians saying they would not reelect the officials who were in charge as unemployment and poverty gripped the country.

Medvedev made a point of linking Wednesday’s deals to Ukraine’s faltering economy.

“As a result of the agreements that have been signed, Ukraine will [save money] that will be spent for domestic economic purposes,” he said.

The deals are sure to further alienate Ukraine’s far west, which is historically linked to Europe and resentful of Russian tampering. Many people in those regions regard Yanukovich as a Russian proxy.

But Yanukovich defended the deals, telling reporters that Ukrainian security would be safeguarded by the presence of the Russian navy.

“We consider this issue in the context of forming a system of collective European security,” Yanukovich said. “We understand that the Black Sea Fleet will be a guarantor of security.”

megan.stack@latimes.com