Ukraine Signs $1.1 Billion LNG deal with Random Man

[CythSmal]

Ukraine thought that it had signed a $1.1 billion deal with the Spanish company Gas Natural Fenosa to build a LNG terminal on their Black Sea coast.

The deal was part of plans to free the Ukraine from its reliance on Gazprom, and was signed in front of the Prime Minister, and the minister for energy.

However Gas Natural Fenosa denied the deal, and it was later discovered that the man who signed on behalf of the Spanish company did not have the power to do so.

The man was merely there to organise the visit of the company’s representatives. Once the reps couldn’t go, the man, Jordi Bonvehi, signed the contract, believing that the company would later on confirm his power to close the deal.

In addition to public embarrassment, the setback leaves Ukraine once again looking for investors in the project at a time when its budget deficit is ballooning and its economy is suffering from the euro zone troubles.

[The Hulk]

This is massively embarrassing for the Ukraine, but also a huge case of negligence on their behalf. How could they sign such a large contract without being sure of the person who was signing it on behalf of the other party. Surely they knew he was only a middleman, as he was there in the country preparing for the real representatives to arrive.