OREANDA-NEWS. On May 21, 2008 The Cabinet unilaterally dissolved an Agreement on joint distribution of products with the U.S. Company Vanco signed in 2007 and concerning development of the Kerch section of the Black Sea shelf.

First Vice Prime Minister Oleksandr Turchynov emphasized that "the Kerch section will be returned to the state", since it is a strategic resource.

O. Turchynov informed that the Government decided not to fulfill the President's decree putting into effect the NSDC's decision on returning a license for development of the Kerch section to the Vanco Prykerchenska LTD. First Vice Prime Minister explained that the Constitution and the legislation clearly determine the right of the officials with regard to non-fulfillment of "criminal decrees and orders". The President's decree with regard to the Vanco was "openly corrupt and causing damage to Ukraine".

O. Turchynov expressed hope that American counterparts will also carry out an investigation into the corruption schemes due to which the American company was made to be an intermediary for covering the shadow economic interests.

As UKRINFORM reported, in early April Prime Minister Yulia Tymoshenko drew attention of the Verkhovna Rada to a need of reviewing the products distribution agreement with the Vanco International Company, the terms of which border on the "global crime". The State Committee for Financial Monitoring analyzed the agreement and extremely negatively estimated it.

Later, the Environmental Protection Ministry cancelled a special permit to the Vanco Prykerchenska LTD. for using the Earth's interior for geological prospecting, including research-production development of deposits with further oil and gas production in the Kerch section of the Earth's interior of the Black Sea continental shelf in the exclusive maritime economic zone of Ukraine.

It should be mentioned that in early 2006, the daughter company of the U.S. Vanco Energy, the Vanсo International registered on the Bermuda Islands, won a competition for development of the Kerch section of the Black Sea shelf. An agreement on the products distribution was signed in late 2007. Later, the Vanсo International transmitted a right for the shelf development to the Company Vanco Prykerchenska LTD., the company that received a license for carrying out works from Viktor Yanukovych's previous Government.

The Vanco Company stated about initiation of the international arbitration versus the Ukrainian Government in connection with the license cancellation.