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Russia and Ukraine may form gas consortium
10.01.2014 09:14 "Agro Perspectiva" (Kyiv) —
Russia and Ukraine have come very close to forming a gas consortium. Experts are saying that although, until recently, many obstacles have prevented the two countries from solving this question, now it is very likely that it will be solved already in 2014, Voice of Russia reports.
If the consortium is concluded, this would most likely save Russia and Ukraine from new «gas wars», and Europe — from irregularities in supplies of Russian gas. Moreover, the consortium may help to modernize Ukraine’s gas trafficking system.
The idea to form a gas consortium between Russia and Ukraine has appeared many years ago. However, within all this time, until now, the sides hadn’t manage to find a decision that would suit both in every detail. Ukraine demanded that its former contract with Russia for supplying Russian gas to Ukraine should be reviewed and that some European companies should join the Russian-Ukrainian gas consortium. However, the latter demand was unacceptable for the Russian gas giant Gazprom, because this would have made the deal risky and unprofitable for the Russian company.
For some time, the European Commission has expressed a wish to participate in the Ukrainian gas transporting system, but added that it would allocate no more than 10% of the money that Ukraine would need to modernize its gas transporting facilities, and only on credit.
In December, Gazprom offered a 30% discounting on Russian gas for Ukraine. This allowed Ukraine to fully reject reverse supplies of expensive gas from Hungary and Poland, starting already from January.
The consortium, if it is formed, is likely to solve many problems. Ukraine will get large investments, which it may use for modernizing its pipelines that now need serious repairing. A consortium with Gazprom will guarantee that starting from 2015, the pipeline will work non-stop and without any money losses. Moreover, this agreement with Ukraine may allow Russia to launch the so-called South Stream pipeline, through which Russian gas will be pumped to Europe bypassing transiter countries.
By the way, the capacities of the South Stream pipeline may allow Russia not to use Ukraine as a transiter country at all. Still, Russia is ready to deliver its gas to Ukraine — and, further, to Europe through Ukraine, but Russia wants it that in this case, Ukraine should guarantee that the pipe would work without stoppages.
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