EU agrees to pay for Ukraine’s gas
Published: 01 August, 2009, 03:46
TAGS: Investment, EU, Russia, Ukraine, Gas
The European Commission and international financial organizations approved recent gas reforms in Ukraine and has promised up to US $1.7 billion to pay for Russian gas.
However, the exact sum has not yet been determined. This money will be allocated separately from the stabilization credit granted to Ukraine by the International Monetary Fund.
The EU-Ukraine agreement to reform the Ukrainian gas transportation system allows further financial assistance to Kiev, said European Commission president Jose Manuel Barroso.
He voiced the EU’s desire to ensure the stable transporting of Russian fuel to European consumers via Ukraine. It is expected that the agreement will significantly reduce the probability of a new gas crisis between Ukraine and Russia.
Jose Manuel Barroso expressed hope that Ukrainian Prime Minister Yulia Timoshenko’s obligations to rebuild the gas transportation system will increase transparency of European gas supplies and the survivability of the entire Ukrainian gas sector for the long-term.
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MEJanssen - Agreed, This is a good move, it secures the gas business in Europe for all - supplier,transit and customer. Governments enabling viable business is always a good and smart move. Gary - what's the catch, well maybe not a catch, but sorting out stage one of a Ukrainian transit system that actually works and is reliable, can be an intermediate step to then connecting in another supplier via Georgia..... I accept this from a business perspective, providing it is a viable business. Russian companies, like anyone else need to compete in the world on equal terms. We are all too familiar with the mess business turns into when it becomes political. What I am against is politicization of non-viable business entities as geopolitical tools, and that is I think a justifiable worry in this particular business. Governments should not be able to subsidize businesses just for geopolitical games.