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Europe Daily Bulletin No. 10839
Contents Publication in full By article 21 / 34
SECTORAL POLICIES / (ae) energy

Modernisation of Ukrainian GTS - a round table without Gazprom

Brussels, 02/05/2013 (Agence Europe) -Russian gas company Gazprom has still not confirmed that it will join the round table organised by the Commission for 3 May on modernisation of the Ukrainian gas transportation system (GTS).

At the time of going to press on Thursday 2 May, Gazprom had still not confirmed whether it would take part in the work to be chaired, on Friday, by Energy Commissioner Günther Oettinger and Ukraine's Industry Minister Eduard Stavytsky. The Russian government will, for its part, be represented by a member of the Russian permanent representation in Brussels. The Ukrainian gas company, Naftogaz, the main European energy groups and the international financial institutions will be represented.

Negotiations must be three-way, Oettinger stresses. Although Russia has still not responded to the EU's proposal, which has been on the table for the past two years, to negotiate trilaterally (EU/Russia/Ukraine) review of Russian gas prices to Ukraine, Commissioner Oettinger remains convinced this is the right solution for all three parties. “Three parties have an interest in the future of the Ukrainian GTS - namely Ukraine, Russia and the EU. Russia's gas supply to the EU is still transited mainly through Ukraine. Out of the 138 billion cubic metres of gas that was exported to Europe in 2012, Ukraine transited around 84 billion cubic metres. We should therefore all discuss together the concerns of each party and try to find the optimal, mutually beneficial solution rather than for one or other party to promote a bilateral approach that excludes one of the interested parties”, Oettinger said in an interview with the Russian news agency Interfax. He went on to add: “The possible options for cooperation on the Ukrainian GTS is something that should be discussed between the three parties concerned - namely Ukraine, the EU and Russia - bearing in mind the sovereign interests of Ukraine”.

Kiev has, for several years, been seeking to bring down the price of gas that it buys from Russia which has agreed to review its gas contract but only on condition that it is able to control the Ukrainian gas pipeline network. The two countries are negotiating the setting in place of a joint consortium to manage the network. (EH/transl.jl)

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