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

EU intergovernmental conference

EU Nations Stake out Turf ahead of Constitutional Conference more »

The rebel trio

Three parties that threatened to quit Latvia's government said on Tuesday they would stay in the coalition for now, heading off a political crisis more »

Czech Government Survives No-Confidence Vote

The ruling center-left coalition on 26 September survived a no-confidence vote that was submitted by the opposition more »

Close Look at World Problems

President Bush and Russian President Vladimir Putin will sit down and have a few heart-to-hearts this weekend more »

Defiant HAMAS Big Out In Open

Hamas' spiritual leader - marked for death by Israel - emerged from hiding yesterday and vowed his group would never lay down its arms more »

The Visit

Russian Patriarch Alexy II Visits Estonia more »

Putin visits U.S.

President Vladimir Putin arrived in New York on 24 September for his third official visit to the United States more »

Estonian view of EU Constitutional Treaty

The Estonian government has worked out its views concerning the EU Constitutional Treaty it is going to present at the intergovernmental conference more »

Chirac lays out plan for Iraqi sovereignty

President Jacques Chirac of France on Sunday called for the immediate transfer of sovereignty in Iraq to the Iraqi people more »

EU probes farm reforms plan

European Union farm ministers took stock yesterday of the drive to liberalise agricultural trade following the collapse of WTO talks in Mexico more »