Brussels, 02/08/2010 (Agence Europe) - Günther Oettinger's visit to Kiev and Odessa on 27 and 28 July focused on upgrading the Ukrainian gas transportation system. The European energy commissioner, to whom Ukraine's prime minister, Mykola Azarov, presented the new national legislation on the principles of the natural gas market, confirmed the EU's support for Ukraine's ambition to take forward the capacity of its gas transport system, as well as the EU27's provision to provide the necessary financial assistance. Although it is in line with European standards, the new Ukrainian draft law should open the road to Ukraine's accession to the Energy Community. “This could become a reality in six months to one year from now”, Oettinger said after his talks with Azarov. The Energy Community - which groups the 27 EU member states, Albania, Bosnia-Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and the UN Interim Administration Mission in Kosovo - aims to create a stable legal and commercial framework in favour of investment, thus allowing stable and permanent energy supplies, the creation of a single set of rules for network energy exchange, and improved energy efficiency and the development of renewables, as well as the development of competition on the network energy markets.
The head of the Ukrainian government supported the European Commission's proposal to establish a joint three-party committee to examine questions relating to energy cooperation between the EU, Russia and Ukraine, whereby 80% of Russian gas transits on its way to the Community market. Azarov reaffirmed Ukraine's intention to substantially invest in upgrading its gas transport system, albeit calling for guarantees on the EU's purchases of fixed quantities of Russian gas crossing Ukraine, as well as Russian agreement on the sale of such volumes. Oettinger confirmed that transit through Ukraine was still the “best way”, the most reliable and the safest way, for the supply of Russian gas to the Community market. “This is the best way, as it is a direct communication and this communication provides the highest operational reliability and safety”, the commissioner said, stating that progress had been made in the dialogue between the EU and Ukraine on investment in the modernisation of the transport system of the former USSR republic.
Russia to provide more gas to EU in medium term, Oettinger says
Although Ukrainian media have not failed to use Oettinger's comments to question the suitability of the Russian gas pipeline project, SouthStream, which is to link the Black Sea to Russia and Bulgaria before branching into two to cross the Balkans to reach Italy and Austria, an interview in the Russian daily, Kommerzant, of 30 July raises some doubt about the energy commissioner's position with regard to the rival project to the Nabucco pan-European project. “Today, Russia provides 25% of the EU's gas needs. We foresee reducing our own production in the near future. I am sure that the share of Russian gas can be around 30%, if not 35%, in the medium term. This requires the creation of a reliable infrastructure”, he said. He went on to say: “The North Stream (in progress) and South Stream gas pipelines (being studied) may play a complementary role, while the Ukrainian and Belarusian pipelines will remain dominant over the next few decades”. Oettinger nonetheless expressed the EU's preference for a direct gas connection with the countries of the Caspian Sea, via the Nabucco gas pipeline, which is to carry gas from Central Asia, circumventing Russia. (E.H./transl.jl)