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Europe Daily Bulletin No. 7840
GENERAL NEWS / (eu) eu/ukraine

EUR 65 million for helping Ukraine counter "fuel gap"

Brussels, 13/11/2000 (Agence Europe) - The European Commission states it is satisfied with the results of President Prod's visit last week to Ukraine (see EUROPE of 9 November, p.8). Commission sources summarised the results as follows:

  • The deadline for closure of the Chernobyl power plant, 15 December 2000, was formally confirmed by Ukrainian authorities. Ukraine seems, moreover, to be confident that the loan from the European Bank for Reconstruction and Development (EBRD), programmed to support the country in completing the two nuclear power plants (K2R4) to make up for the closure of Chernobyl, may be granted in the very near future. Mr Prodi restated the Commission's willingness to release a Euratom loan of $585 million as soon as the EBRD funding has been granted. Also, Mr Prodi announced that the EU, in the context of TACIS, will give Ukraine aid amounting to EUR 65 million to help finance the "fuel gap" that Ukraine is likely to have to face for one or two years further to the forthcoming closure of Chernobyl, pending full operation of the two new nuclear power stations (K2R4) currently under completion. From these EUR 65 million, 25 million will be disbursed immediately, 20 million in 2001 and 20 million in 2002.
  • Ukraine does not seem unduly concerned about the plan to strengthen energy cooperation between the EU and Russia (with a view to increasing gas and oil deliveries towards Europe by 2020), nor of current speculation about the route for new gas pipelines that would avoid Ukraine. Kiev considers that its gas and oil transport infrastructures towards Europe are competitive and that their potential is far from being fully exploited. The transit capacity across Ukraine could be raised by at least 30%, say Ukrainian authorities. Mr Prodi stressed that the EU does not wish to isolate Ukraine but, on the contrary, Ukraine will be integrated in the EU's energy concept and will have an important role to play in long term relations between the EU and Russia.
  • Ukraine is not opposed to EU enlargement to the east (on the contrary, it hopes to one day become a member of the EU), but it does have growing concern about the negative effects possible, mainly in terms of trade and the introduction of visas. Mr Prodi restated the arguments with which the EU also answers similar concerns expressed by Russia, namely that enlargement will increase stability and economic prosperity throughout Europe, including the third countries close to the enlarged EU.

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