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

"He is not a candidate for anything"

Solana Plays Down Talk He Wants Top EU Job more »

The Talks

Following his talks with Finnish counterpart Erkki Tuomioja, Russian Foreign Minister Sergei Lavrov said at a press conference that they had dealt with bilateral cooperation on the regional level more »

The War on Terror

Diplomats Look to Cold War Tactics for Help in Arab World more »

Fradkov blasts idea of Russian compensation for Estonia

The question of Russia paying compensation to Estonia for damage allegedly done when it was part of the Soviet Union cannot be raised more »

BULGARIA TO SUPPORT MACEDONIA ON ITS ROAD TO NATO AND EU

As NATO member, Bulgaria will grant full support to Macedonia's efforts for accession to the Alliance and European Union more »

The Constitutional Treaty

The Taoiseach and President of the European Council, Mr Bertie Ahern announced this evening that EU leaders have reached agreement on a new Constitutional Treaty for Europe at the European Council in Brussels more »

Hu leaves Romania, visits Uzbekistan

Chinese culture is front and centre this week in Uzbekistan more »

Bush to Meet With Hungarian Leader

President Bush will meet with Hungarian Prime Minister Peter Medgyessy on Tuesday more »

The forum

International forum on Eurasian integration open in Astana more »