Ukraine has no plans to change pipeline set-up: Prime Minister

20 Jul, 2006

Ukraine has no plans to change the ownership or management of its existing network of pipelines taking Russian gas to European customers, Prime Minister Yuri Yekhanurov said on Wednesday.
Ukraine, whose pipelines handle 80 percent of Russian gas intended for Europe, has had periodic price disputes with Russia. One such row in the New Year briefly disrupted supplies.
Russia has proposed that other ex-Soviet states - including Moldova, Belarus and Georgia - cede control over pipelines crossing their territory to secure price concessions.
Ukraine has refused to consider any such proposal. "Ukraine's gas transport system is not subject to privatisation and is under complete state control. These are the principles on which we operate," Yekhanurov told a cabinet meeting. "Questions on operating the existing gas transport system are outside the framework of any talks with other countries."
The head of Ukraine's state oil and gas company Naftogaz Ukraine, Oleksander Bolkisev, said last week that agreement had been reached to keep imported prices gas prices at $95 per 1,000 cubic metres until the end of the year, the level agreed in January. That price was nearly twice previous levels.
Bolkisev said Naftogaz was examining the possibility of renewing talks on creating an international consortium to manage gas pipelines.
Bolkisev said Kiev could agree if a system were developed allowing for increased transit flows and guaranteed supplies for Ukraine. He ruled out any transfer of ownership.

Read Comments