Posted on 03/23/2005 3:49:22 PM PST by jb6
On Wednesday, March 23, it was announced that Ukrainian President Viktor Yushchenko invited the Central Asian state of Turkmenistan to manage Kiev’s gas transit pipelines to Europe.
During his first official visit to Ashgabat, which supplies the bulk of Ukraine’s gas needs via Russia, Yushchenko said that Turkmenistan may join Russia and Germany in managing Ukraine’s ageing pipelines and building new ones to boost transit. But the Ukrainian leader did not say how he planned to persuade Russia to open up its pipelines for Turkmenistan to begin supplying gas outside the former Soviet Union.
“Europe will have its energy balance in any case — with or without use,” Yushchenko, quoted by Reuters, told a news conference. “I would like to see it happening with us. I am also talking here about Turkmen interests… I hope we are going to step in together [with Ashgabat] on a completely new level. We are not discussing it in public yet.”
Land-locked Turkmenistan has struggled since gaining its independence in 1991 to gain access to markets outside Russia and Ukraine, especially in Europe. But it has been facing opposition from the Russian natural gas monopoly Gazprom, plus its projects are made virtually impossible due to very high costs of production and a difficult investment climate.
Despite assurances of cooperation which came from the Ukrainian leader, Ukraine and Turkmenistan are yet to solve a price dispute that has been going on since December 2004. At the beginning of 2005 Ashgabat halted gas supplies to both Russia and Ukraine, demanding that prices be raised to $58 per 1,000 cubic meters from last year’s price of $44. It later resumed shipments amid a continuing price dispute.
Russia’s Gazprom has said that it considers the old price valid, while energy-hungry Ukraine says it is already paying $58, but would prefer a broader long-term deal. The deal may involve Turkmen participation in the Ukrainian consortium which could also involve Gazprom and Germany’s Ruhrgaz which plans to invest billions in upgrading Ukraine’s existing pipelines to Europe and building new links.
Gazprom has opposed surrendering its export monopoly to Europe, which buys one quarter of its gas from the Russian firm, but since it also needs cheap Turkmen gas as a backup until its Arctic gas fields begin production, the gas monopoly is likely to concede to Turkmenistan’s participation.
Thank you
ping
Gee, will they be required to use the Turkministan little-book-of-stupid-sayings-by-Fearless-Leader to manage the facility?
Another Stan heard from. 'Have you gas?' `Why, yes, I do.'
No, but they will bring revised calendars.
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