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

Zuma to Host Bulgarian Counterpart

Political, economic and trade relations are set to take centre stage when Deputy President Jacob Zuma hosts his Bulgarian counterpart Vice President Angel Marin in Pretoria on Thursday more »

Moscow Talks

European Union Steps Up Efforts to End Ukrainian Vote Deadlock more »

Barroso: Euro Rules OK

A fundamental review of the Stability and Growth Pact -- the rules governing the euro -- would not add to its credibility, Commission President Jose Barroso said on Wednesday more »

An agreement

Repeated elections best outcome to political crisis in Ukraine-EU more »

EU-Russia summit

President Vladimir Putin of Russia has invited his Latvian and Estonian counterparts to come to Moscow for celebrations of the 60th anniversary of the victory over Nazi Germany in the Second World War more »

UZBEK ELECTION CAMPAIGNS BEGIN

Uzbekistan's five officially registered political parties presented their election platforms on national television on 22 November in preparation for 26 December parliamentary elections more »

Ukrainian opposition calls for national strike

Opposition leader Viktor Yushchenko is calling for an "all-Ukrainian political strike'' to protest the declaration of Moscow-backed candidate Viktor Yanukovych as the winner of last weekend's presidential runoff election more »

Brazil, Russia sign pact on space cooperation

Brazil and Russia signed an agreement on space cooperation that calls for development of a launch vehicle for Brazil, production of geostationary satellites and other projects more »

New Estonian defense minister appointed

Estonian President Arnold Ruutel has appointed Prime Minister Juhan Parts's nominee Jaak Joeruut as the country's new defense minister more »

Ukrainians Denounce Election As Fraudulent

Tens of thousands of demonstrators jammed downtown Kiev in freezing temperatures Monday night, denouncing Ukraine's presidential runoff election as fraudulent more »