Iranian Gas Transit Via Ukraine to Europe Discussed in Tehran

TEHRAN, Feb 25 Asia Pulse - The Iranian-Ukrainian talks in the Iranian capital focused on the issue of Iranian gas transit via Ukraine to Europe. Iranian Ambassador to Ukraine Bahman Taherian Mobarake and Ukrainian Fuel Minister Ivan Plachkov exchanged views on the prospects for bilateral cooperation in the energy sphere.

According to the Iranian news agency IRNA, Plachkov expressed Ukraine`s readiness to import Iranian natural gas and take part in the implementation of oil and gas recovery projects in Iran.

The Iranian diplomat for his part came out in favor of calling a regular meeting of the joint energy committee in the context of Ukraine`s consent to allow Iranian gas transit to Europe. Ukrainian President Viktor Yushchenko and Iranian Foreign Minister Kamal Kharrazi at their meeting held within the framework of the Davos World Economic Forum in late January expressed mutual intention to develop cooperation in various spheres, IRNA said.

Iran is placed second in the world in the amount of natural gas deposits, after Russia.

Iran accounts for some 16 per cent of the global natural gas reserves. ADVERTISEMENT

A festive ceremony on the occasion of the completion of the fourth and fifth stages of the development of a major world`s natural gas deposit South Pars will be held one of these days in the presence of Iranian President Mohammad Khatami.

"potential customers for Iranian gas exports include: Ukraine (Kiev reportedly is interested in building an Iran-Armenia-Georgia-Crimea-Ukraine line)"

http://www.eia.doe.gov/emeu/cabs/iran.html

ARMINFO NEWS AGENCY

February 25, 2005

IRAN DISCUSSES IN KIEV POSSIBILITIES OF EXPORT OF GAS TO EUROPE THROUGH TERRITORY OF UKRAINE

KIEV, FEBRUARY 25. ARMINFO. Special representative of Iran on Caspian sea Mehdi Safari and Minister of Energy of the Ukraine Ivan Plachkov discussed the possibilities of export and transit of natural gas from Iran through the territory of the Ukraine to Europe.

As IRNA informs, during the meeting the participants also discussed issues of the cooperation of the two countries in oil and gas sphere and the issue of holding the third meeting of the joint energy committee of Iran and the Ukraine.

To remind that the process of construction of the gas pipe-line Iran-Armenia was started in Nov, 2004. According to the Armenian-Iranian agreement, within 20 years Iran must supply 36 bln cubic meter of natural gas to Armenia against electricity produced by energy generative facilities of Armenia. The construction of the gas pipe-line must be over till Jan 1, 2007. According to the former Ambassador of Iran to Armenia Mohammad Farhad Koleini, 20-25 years later the trade turnover between Armenia and Iran within the framework of the agreement on construction of the gas pipe-line from Iran to Armenia will reach $10 bln. The higher leadership of Armenia denies the possibility of the transit of the Iranian gas to Europe through Armenia.

Good background, with geopolitical analysis for the US:

"In 1995, an agreement was signed to transport oil from the Azerbaijani sector of the Caspian basin to Turkey, and further, to Europe. For Azerbaijan, the Baku-Ceyhan pipeline was a means to exert pressure on Armenia; for the United States, it was a device to move Armenia away from Russian influence. The first discussions on constructing an Iran-Armenia gas pipeline began in 1992. At the time, Armenia was in a deep energy crisis – Azerbaijan and Turkey had imposed a blockade on Armenia, the Armenian Nuclear Power Station was not operating, and the gas pipeline from Russia to Armenia was being periodically blown up. But the arrangement between the governments to build an Iran-Armenia gas pipeline was not made until 1995, when Armenia was no longer in an extreme situation, and when the Baku-Ceyhan agreement had been signed. Thus, it was not by accident that the option of creating an Iran-Armenia gas route was being developed – Iranian gas would flow via Armenia to European countries, cutting through the Georgia-Black Sea-Ukraine route.

By 2000, the Kiev research institute TransGas had already calculated how much investment would be needed to transport Iranian gas from the Georgian city of Supsa to the Ukrainian city of Theodosia. At the time it was also rumored that the European Bank on Reconstruction and Development would assist in the construction of the pipeline, under the condition that the Armenian Nuclear Power Station would be closed down. In fact, Armenia, as a country isolated from the epoch-making projects, was trying to solve its own problems – theoretically contrary to the interests of Russia.

After he returned from Ankara in January 2001, then-president of Georgia Edward Shevardnadze announced the arrangement to build a Kars-Akhalkalak railroad. It was natural that taking advantage of Armenian-Azerbaijani and Armenian-Turkish differences, he wanted cargo from Turkey to Azerbaijan, Central Asia, and Europe to pass through Georgia. This arrangement between Georgia and Turkey has never been implemented. But the fact is that by making it, the two countries dealt a blow to the long-term plans of their strategic partner, the US, first of all. The United States does not aim at keeping Georgia and Azerbaijan within its sphere of influence, but at pulling Armenia away from the strong claws of Russia.

In the course of May 2004, three communication projects in the region were announced. On May 13 th , an agreement on constructing the Iran-Armenia gas pipeline was signed. The pipeline will not cross the Armenian-Georgian border, i.e. it will help to satisfy only the energy requirements of the two countries – Armenia and Iran. Within a closed cycle, Iran will export electric energy in exchange for the gas imported by Armenia. According to various sources, Russia is categorically opposed to making the Iran-Armenia pipeline a transit project, even though Russia has recently acquired control of 80 percent of the energy system of Armenia, and wouldn't suffer any economic damage. Why Russia opposed the plans of Armenia, which has great significance for Russia in the region, became clear just eleven days later."

Hetq online -Armenia
http://www.hetq.am/eng/politics/0406-hayastan.html

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.