Commenting on the outcome of the meeting, Alexei Kudrin pointed out that within two months the Finance Ministries of Russia and Ukraine would draft an agreement on the terms and conditions for extending the lease for Russia’s Black Sea Fleet to be stationed at Sevastopol. This document will be prepared pursuant to a bilateral agreement signed in April 2010 on extending the lease allowing the fleet to be stationed in Ukraine for 25 years with a possibility of further extension.

According to the Russian deputy prime minister, “in this new agreement we will determine the procedure for using discounts on natural gas prices as a source of payment for  the rent of the Black Sea Fleet base in Sevastopol after 2017.” Mr Kudrin emphasised that the countries had not negotiated the terms and conditions of the agreement yet. “They depend on the volumes of gas supplies and the actual prices based on which the discount will be calculated,” Alexei Kudrin said.

During the meeting, the two officials also signed a memorandum of cooperation between the ministries. According to Mr Kudrin, this memorandum stipulates the opportunities for exchanging information, including mutual assistance in drafting the budgets and reforming the tax systems of Russia and Ukraine.

“We have discussed new developments in budget policy in the context of the reforms that are underway in Russia and Ukraine. We exchanged certain information and will continue this exchange in terms of our budget and tax reforms,” the Russian minister of finance said.