Moscow Suffers Setback In Pipeline Plan To Bypass Ukraine

Published: 4 September 2001 y., Tuesday
The deal is likely to make Warsaw more resistant to Moscow's strategy and could spur Russia's attempts to mend fences with Kyiv. A deal reached on 29 August by Poland and Norway could spell the end of Russia's long campaign to pressure Ukraine over its pipelines that transport Russian gas. The British "Financial Times" reported that Norway's agreement to sell 74 billion cubic meters of gas to Poland over a 16-year period will reduce Warsaw's dependence on Russia for fuel supplies. The deliveries by Norway's Statoil to the Polish Oil and Gas Company, known as PGNiG, would start in 2008 and rise quickly to 5 billion cubic meters annually through 2024. Although the amount seems relatively small, Poland consumed only about 11 billion cubic meters of gas last year. Over 60 percent of that was imported from Russia. The deal is important because of the three-way tensions that have been building among Russia, Poland, and Ukraine over Kyiv's use of Russian gas and Moscow's attempts to solve the problem. Some 90 percent of Russia's gas exports to Europe run through the former Soviet pipelines in Ukraine. But Russia has frequently charged Ukraine with illicitly tapping the gas. Ukraine also owes an estimated $1.3 billion for past Russian supplies. In July of last year, Russia announced it would try to build a bypass line through Poland and Slovakia to reduce its reliance on Ukraine and eventually double energy exports to the European Union. The agreement with Norway, which has been debated for months, may help Poland in at least two ways. It limits Moscow's power to pressure Warsaw over its stand on the bypass by ending its role as monopoly supplier. It may also satisfy an EU directive on diversifying energy sources, which may aid Poland's drive to join the EU. On the downside, Poland will pay more for Norwegian gas, which will require a new pipeline to be built across the Baltic Sea. Poland's neighbor Germany may also be displeased, since Germany's Ruhrgas is a shareholder in Russia's Gazprom and a partner in studying the bypass plan.
Šaltinis: caspian.ru
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Central Asia's great base race

Anyone examining contemporary security issues in Central Asia and the Caucasus quickly comes to the conclusion that security has become increasingly militarized more »

Bush Proposes Sweeping Changes to US Immigration Law

Bush wants to change U.S. immigration laws to grant legal status to millions of people who are working in the country illegally more »

The priorities for 2004

Schröder switches policy emphasis to focus on education and research more »

EU Constitution row could spill into 2005

Irish Prime Minister Bertie Ahern is pessimistic about reaching an agreement on the EU Constitution during the Irish EU Presidency more »

FREEDOM HOUSE says Belarus is “not free”

The New-York-based NGO Freedom House classified Belarus as "not free" and Ukraine as "partly free" in its annual survey of freedom and democracy around the world more »

Dutchman Steers NATO Through New Challenges

Dutch foreign minister Jaap de Hoop Scheffer takes over at NATO more »

Prodi foresees two speed Europe

European Commission President Romano Prodi said Friday a two-speed Europe might be inevitable if EU leaders fail to agree on a new constitution this year more »

China offers Belarus 10 million yuan in aid

China will provide Belarus with 10 million RMB yuan (1.21 million US dollars) in aid under an agreement reached between the two countries in Minsk more »

Macedonia Prepares EU Membership Bid

Macedonia has signaled it will apply for European Union membership before the end of February 2004 more »

New PM Pledges to Improve Relations With Former Enemies

Croatia's new prime minister is pledging to improve relations with former enemies more »