UKRAINE: Energy cooperation at the top of the agenda during talks between presidents of Kazakhstan and Ukraine

Record ID: 640831

  • Title: UKRAINE: Energy cooperation at the top of the agenda during talks between presidents of Kazakhstan and Ukraine
  • Date: 5th February 2007
  • Summary: FLAG WITH UKRAINIAN PRESIDENT'S COAT OF ARMS, FLYING FROM PALACE
  • Embargoed: 20th February 2007 12:00
  • Keywords:
  • Location: Ukraine
  • Country: Ukraine
  • Topics: International Relations,Energy
  • Reuters ID: LVA5AHJOVL6I8AGBKKFLNQPIA51A
  • Story Text: The Ukrainian president says it is too early to talk about setting up any joint venture with Russia to manage gas transit pipelines crossing his country. Ukraine's President Viktor Yushchenko said it was far too early to talk about setting up any joint venture with Russia to manage gas transit pipelines crossing his country, as these were strategic assets.
    Yushchenko made the remarks after hosting talks with Kazakhstan President Nursultan Nazarbayev in Kiev on Friday (February 2), where cooperation in the energy sector with the oil and gas rich Central Asian state, topped the agenda of bilateral discussions.
    The Ukraine president's comments contrasted with remarks by Russian President Vladimir Putin that Moscow and Kiev had revived an idea to set up a big venture to manage the pipelines.
    Putin said on Thursday (February 1) the Ukrainian offer was of "a revolutionary character".
    Yushchenko said nothing substantial on the issue had been discussed.
    His reluctance is also at odds with the approach of his Ukrainian political rival, Prime Minister Viktor Yanukovich, who has backed the idea.
    "The gas transport system is a strategic Ukrainian asset. By law, the state has a monopoly over it and manages it. Everything which is related to modifying the model requires a very thorough and cautious approach," Yushchenko told a joint news conference with Nazarbayev.
    "It is difficult to speak about this because we need to debate the principles of organising our relations and methods to implement initiatives. I would not mention any percentages or shares in any plants today because we are far away from this," he added.
    Russian gas giant Gazprom has long wanted to acquire control over the Ukrainian gas transit pipeline system. Up to 80 percent of Russian natural gas destined for European markets passes via Ukrainian territory.
    The two neighbours clashed last year over gas prices and transit tariffs, sending shockwaves across Europe during one of the coldest winters on record after gas deliveries were halted for several days.
    Russia already controls gas pipelines in other transit countries including Belarus and Moldova.
    Yushchenko and other Ukrainian politicians have opposed any notion of ceding control.
    But the president's stance could be undermined by Yanukovich, who is friendly to Moscow, and has said he supported the idea of setting up the gas joint venture with Russia while demanding equal rights.
    Yulia Tymoshenko, a former prime minister and now the main opposition leader, said her parliamentary group had submitted a bill to ban "manipulation" of the state oil and gas company Naftogaz Ukrainy, which manages the gas transit pipelines.
    Ukraine imports up to 80 percent of its energy, mostly from Russia, and has always viewed its control and management of the gas pipeline system as a safeguard against Russian interference.
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