STATEMENT BY AMBASSADOR TAYLOR

I am very disappointed that the Cabinet of Ministers today took unilateral action to revoke the Production Sharing Agreement the Government of Ukraine negotiated with the U.S. company Vanco. For the Government of Ukraine to attract investors, particularly in those sectors vital to its energy security, it needs to make clear that it respects the sanctity of contracts and the rule of law.

We continue to believe a direct discussion between the two parties could remove misunderstandings that lie at the heart of this controversy. This has not happened to date, despite a clear promise to do so. We urge the Government to reconsider its decision and return to a policy of dialogue, so this project, important to Ukraine’s energy security, can get back on track.