Brussels, 22/04/2013 (Agence Europe) - Brussels and Kiev will decide later this year, together with Moscow, about the consortium that manages the Ukrainian gas transport system (GTS), explained EU Commissioner Günther Oettinger and Ukranian industry minister Eduard Stavytsky after a round table discussion they had jointly chaired in Brussels on Friday 3 May on updating the Ukrainian GTS.
Ukraine has been trying for several years to cut the price of gas from Russia. Moscow has agreed to revise its gas contracts, but only if it gets to control the Ukrainian gas pipelines. The countries are now negotiating the establishment of a joint consortium to manage the GTS. The EU wants to help Ukraine to update its gas pipelines and keep Russia sweet despite Moscow's desire to keep control over the Ukrainian economy. For the past two years, the EU has been demanding to be involved in the two countries' talks.
On Friday, Oettinger said Ukraine had the potential to become a major turning point for the gas market, pointing out that the every year, the EU buys 140 billion cubic metres of gas from Russia, 85 billion of which transits through the Ukraine. He said Ukraine must renovate and update its GTS and storage capacity, which are the biggest in Europe.
Stavitskyi said his country needs some USD 550 million for this purpose. Ukraine can raise USD 240 million of this, and USD 100 million will be provided by international financial institutions. Kiev wants to increase its gas storage capacity from 31 to 50 billion cubic metres and hopes to see a gas pipeline with the EU, passing through Slovakia, so that it can also buy gas from the EU. (EH/transl.fl)