Paris
23 March 2009
Europe and Ukraine agreed in Brussels to work together to encourage investment in Kiev's aging gas infrastructure, with Ukraine also endorsing more transparent tariffs for a system that is vital for Europe's energy needs.
Ukrainian PM Tymoshenko and President Yushchenko with EU Commissioner Benita Ferrero-Waldner and EC President Jose Barroso (l to r) at signing ceremony for modernizing Ukraine's gas transit system, 23 Mar 2009 |
Ukrainian Prime Minister Yulia Tymoshenko told conference participants that new investment in the country's gas infrastructure will greatly increase deliveries.
Ukraine presented a plan for modernizing its gas pipeline that it says will cost about $7.5 billion. It also said it would provide fair and transparent tariffs for transshipping gas.
European officials have welcomed the plan as a way to help shore up EU energy security - and Ukraine's economy. External Relations Commissioner Benita Ferrero-Waldner said the 27-member European Union does not want a repeat of past problems.
"We cannot allow our citizens to face fuel shortages in the depth of winter again. Nor can Ukraine's economy develop without a more sustainable approach," said Ferrero-Waldner.
But Russia's energy minister Sergei Schmatko warned against what he described as a "unilateral" approach that does not pay enough attention to Moscow's crucial role as a gas supplier.
Europe has increasingly put a premium on finding reliable sources of energy elsewhere. It is eyeing a gas pipeline project called Nabucco aimed to transport Central Asian gas to Europe in a way that bypasses Russia.