BASIC CES NORMATIVE ACTS TO BE READY BEFORE YEAR'S END?

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MOSCOW, May 23 (RIA Novosti) - Russia, Kazakhstan, Ukraine and Belarus are opening a presidential summit in Yalta, on the Black Sea coast, tomorrow on a common economic space. Basic related bylaws will, most probably, be ready before the year's end, expects Viktor Khristenko, Russia's Energy Minister.

Preparations are going on at an unprecedented pace. A decision for a relevant quadripartite agreement, made in February 2003, has been coordinated, signed and ratified since, points out Mr. Khristenko, Russian spokesman on the high-level common economic space team.

Economic space establishment efforts are coming against certain barriers, a Russian government official said to Novosti. In particular, each of the four countries has an opinion of its own of what matters ought to be tackled as top priority, and which papers to pass first. Thus, Kazakhstan is after overall transport fares reduced, while Ukraine demands the same for railways alone, and Russia focuses on each nation retaining its own capital investment patterns.

As Moscow sees the matter, to adopt all papers in a package is the only way out of the controversy. Once the four countries have it all in one codified document-something like an economic space constitution, they can eventually authorize a varying integration scope and pace for particular countries and economic fields, said the source.

He highlighted another integration obstacle-Ukrainian domestic political problems, what with a presidential poll, due in October. It would be better to be settling all integration problems with that country on a bilateral arrangement, deems the interviewee.

As for Ukrainian prospects to ratify a Zero Option agreement of Bishkek, and Russia's shift to value added taxation of its oil and gas importer countries, the government functionary does not think the two issues can be tied together at all. Russia stands to lose an annual average 800 million US dollars if it accepts the VAT arrangement-yet it is willing to do so if only it sees the zero option generally accepted.

The zero option regards Russia as the Soviet Union's only successor to foreign property and debts alike. Ukraine is for now the only post-Soviet country not to put up with it.

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