Brussels, 06/05/2013 (Agence Europe) - Ukraine, which is still facing a gas dispute with its Russian neighbour, is preparing to become a major energy platform for the EU.
In Brussels on 3 May (see EUROPE 10840), the round table on the Ukrainian gas market, which is co-chaired by Commissioner Günther Oettinger and the Ukrainian Minister Eduard Stavytsky, confirmed Ukraine's commitment to become an energy platform and an essential element of the single market for energy.
In written conclusions, the stakeholders - including representatives of the member states, European energy groups and the Russian administration - welcomed the progress made by Ukraine in increasing its energy security, particularly thanks to the modernisation of its gas transport system, the diversification of its gas sources, and its efforts to reform its gas sector and restructure its national energy group, Naftogaz, in line with its commitments to the energy community, which the country joined in 2011. The parties acknowledge that Ukraine is at a crossroads and has a major opportunity to develop beyond its traditional role of a transit country and become a gas hub for Eastern Europe due to its conventional and unconventional gas resources, its extensive pipeline network and its sizeable gas storage facilities.
The conclusions state that the development of an effective long-term strategy for the Ukrainian gas transport network and the country's storage capacity, as well as the development of a non-discriminatory and stable legal and regulatory framework, are a prerequisite for the continuation of the development of the Ukrainian gas market and its gradual integration into the EU gas market. Against this backdrop, the stakeholders stressed the importance of guaranteeing both bi-directional physical flows and virtual reverse flows for gas, with a priority being placed on facilitating a solution for such flows between the Ukrainian and Slovenian transmission system operators.
Recognising substantial progress in foreign direct investment in the Ukrainian conventional and unconventional gas sectors, the participants stressed the essential role of the Ukrainian gas transport system, both due to its geographical position as a transit country and its storage and production capacities which offer “significant flexibility”, as long as the reforms are continued and fully implemented, and the transparency of gas transit activities is increased. The key role of the EBRD and the EIB, as international financial institutions, in the reconstruction of the Ukrainian gas transit system was also emphasised, as was the importance of promoting a tripartite consortium between Russia, the EU and Ukraine to manage the Ukrainian gas transport system in the future.
Lastly, the parties agreed to set in place a consultative committee consisting of representatives of the Commission and the Ukrainian authorities, the Energy Community Secretariat, the member states and interested companies and financial institutions to support the continuing progress of gas sector reform in Ukraine. This consultative committee will meet on an ad hoc basis and will analyse developments on the Ukrainian gas market and, as appropriate, offer recommendations to Brussels and Kiev. (EH/transl.fl)