President Viktor Yuschenko has denied reports of Prime Minister Yulia Tymoshenko, who said that launch of Odesa-Brody oil pipeline towards Brody bears corruptive pattern.

He disclosed this at a press conference.

"What is corruptive about this, when 100-percent state monopoly will provide oil transit," he said.

According to the president, this issue is more political than economic.

"I suppose this is about political priorities, which are out of the economic interests," he said.

Yuschenko considers that talks on inexpediency of use of the oil pipeline in forward mode are unacceptable.

As Ukrainian News earlier reported, the Ukrainian Cabinet of Ministers has forbidden the Ukrtransnafta company to independently sign contracts with the Halychyna oil refinery (Lviv region) and oil refinery Naftokhimik Prykarpattia (Ivano-Frankivsk region) on supplies by the Odesa - Brody pipeline in averse mode of Caspian oil until a special government decision.

Tymoshenko explained the ban for Ukrtransnafta with attempts to stop corruption.

The contract provided for delivery of about 5 million tons of oil to the refinery and transit of about 3 million tons via Ukraine and Slovakia to Kralupy-based refinery, the Czech Republic.

Ukrtransnafta is the executor of services and Milbert Ventures is the customer and financial guarantor.

On July 16, the above contracts should have been signed at the meeting with President Viktor Yuschenko.