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

President: "Our unity, trust, determination to act are the guiding principles on the path to a more secure world"

President of the Republic of Lithuania Valdas Adamkus participated in the opening session of the Organisation for Security and Co-operation in Europe (OSCE) Parliamentary Assembly. more »

President Adamkus awarded with Lithuanian Millennium Star

President Valdas Adamkus visited the Ministry of Foreign Affairs to bid farewell to its leadership and diplomatic corps. more »

Vilnius Square to be opened by Presidents of Lithuania and Georgia

June 22, Monday, President Valdas Adamkus is leaving for a working visit to Georgia. more »

Interconnection of Baltic Energy Markets

On Wednesday, Prime Minister Andrius Kubilius and his Baltic counterparts met with President of the European Commission José Manuel Barroso. more »

President to attend the European Summit in Brussels

This Thursday, June 18, President of the Republic of Lithuania Valdas Adamkus goes on a two-day working visit to Brussels, Belgium, to attend the European Council meeting. more »

Lithuania's 500 mln eurobond issue sold out

Lithuania has successfully tapped international financial markets with a 500-million euro benchmark eurobond transaction due 2014, with an annual coupon of 9.375 percent. more »

Accreditation for the Millennium celebratory events on July 6 starts today

July 6 will see a number of events dedicated to the Millennium of the Name of Lithuania. more »

President believes business community will keep performing successfully in local and foreign markets

President of the Republic of Lithuania Valdas Adamkus attended the Swedish Business Awards 2009 Ceremony. more »

President discussed bilateral security and defence cooperation with German Defence Minister

President of the Republic of Lithuania Valdas Adamkus received Minister of Defence of the Federal Republic of Germany, Mr. Franz Josef Jung. more »

President invites foreign businesspeople to invest in Lithuania more actively

President of the Republic of Lithuania Valdas Adamkus attended a reception as part of the international conference „The World Forum for Direct Investment 2009". more »