Financial Times FT.com

Kiev cancels licence in hydrocarbon rights dispute

By Roman Olearchyk in Kiev

Published: May 13 2008 03:00 | Last updated: May 13 2008 03:00

The Ukrainian prime minister cast a shadow over a strategically important hydrocarbon exploration project yesterday, openly accusing a US energy company leading the venture of holding backroom talks with Russia's Gazprom.

Announcing her government had repealed an exploration licence off Ukraine's Black Sea coast for Houston-based Vanco Energy, Yulia Tymoshenko also raised the stakes in a long-standing rivalry with Viktor Yushchenko, the president.

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