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    Ukrainian GTS will remain strategic route for Russian gas supply to Europe

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Summary

Marat Terterov of the UGF emphasized the Ukranian Gas Transportation System remains the strategic and logical corridor to deliver Russian gas to the EU

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Natural Gas & LNG News, News By Country, Russia, Ukraine, Pipelines, Nord Stream Pipeline, South Stream Pipeline

Ukrainian GTS will remain strategic route for Russian gas supply to Europe

Ukrainian gas transportation system will remain a strategic and logical corridor to deliver Russian natural gas to the European Union.

Marat Terterov, an energy expert and head of the European Geopolitical Forum (Brussels, EGF), emphasized this in his comments to UKRINFORM on the condition and prospects of introducing alternative gas pipeline projects, in particular Nord Stream and South Stream.

"The Ukrainian corridor will remain a strategic and logical route for Russian gas supplies to Europe as the EU is the main gas export market for Russia," the expert said.

Therefore, according to Terterov, even after launching Nord Stream and Russia's getting in this connection overwhelming positions in gas talks with Ukraine, "Kyiv will remain a 'tough nut' for Moscow to obtain the desired concessions."

"I'm not sure that Moscow will have all the leverage to completely control the situation," Terterov noted.

At the same time, the EGF head stated that the start of Nord Stream construction and the prospects for continued construction of South Stream had a negative impact on relations between Ukraine and Russia in energy sector.

"In November 2011, Russia and Ukraine were halfway to revise the gas agreements of January 2009. The price that Ukraine pays now for Russian gas is unacceptable for the Ukrainian economy, especially in the long run. Kyiv realizes that. Kyiv also realizes that it may lose its serious transit positions if Russia begins to redirect Siberian natural gas through Nord Stream. It is also necessary to understand that South Stream, too, may become a reality in a few years," the expert said.

In this regard, according to Terterov, the Ukrainian party has to demonstrate willingness to make larger concessions to Russia than before. According to the expert, the point at issue is Russia's participation in managing the Ukrainian gas transportation system, payments for Russian gas in rubles and more loyal position of the Russian Federation on other issues of the relevant negotiation processes.

Source: Ukrinform