Ukrainian President Calls for Tripartite Gas Consortium

KYIV, Ukraine, February 6, 2012 /PRNewswire/ --

The President of Ukraine Viktor Yanukovych reckoned that participation of main transit agent (Ukraine), provider (Russia), and consumer (Europe) was vital for establishing unified energy cooperation rules. According to the President, tripartite gas consortium can guarantee the protection of interests of all the parties involved.

Viktor Yanukovych made the above statement during his address at the 48^th Munich Security Conference in Germany, reported the press office of the president. He noted that Ukraine's share of 34 percent in the consortium, while Europe and Russia get 33 each, would ensure transparency of the gas transporting system management. Such arrangement would provide energy partners with a platform for efficient management of their energy issues under unified rules.

Modernization of the Ukrainian gas transporting system would be one of the main tasks on the agenda of the gas consortium, said Viktor Yanukovych. Currently, Ukraine uses only about two thirds of the estimated capacity of its gas transporting system, which already supplies some 70 percent of Russian gas to Europe. Renovation of the system would allow for the increase of the transfer capacity. It would also be beneficial since building alternate gas transporting routes requires time, tremendous financial and human resources as well as creates unnecessary threats to the environment, emphasized President of Ukraine.

Similarly to Viktor Yanukovych, the EU officials have previously stated the desire of the Union to participate in Ukraine-Russia gas transit negotiations. On January 13, 2012, the European Commissioner for Energy Günther Oettinger said: "The EU is willing, if Ukraine and Russia so wish, to enter into tripartite consultations on gas transit at any time." Russia has yet to address these calls from its international energy sector partners.

Willing to introduce unified rules in energy sector management, Ukraine joined the Energy Community treaty in 2011. The Energy Community aims at establishing a common regulatory framework for member energy markets through extending EU standards across their territories. Founded in 2006, it regulates energy relations between the EU and a number of neighboring countries. Ukraine plans to guarantee its energy security and integrate into the European energy system by joining the organization.

Ukraine also plans to widen energy security dialogue through Organization for Security and Co-operation in Europe, which the country will chair in 2013.

SOURCE Worldwide News Ukraine