Russia has
started construction of the South Stream gas pipeline in an effort to diversify
its
supply routes toEuropeby bypassing Ukraine, but Kyiv is also
seeking to diversify its gas supplies by participating in projects providing
alternatives toRussiangas.
Ukraine is willing and ready to participate in the Trans-Anatolian Pipeline
Project (TANAP), which will carry Azerbaijani gas toEuropevia
Turkey, said Ukrainian Foreign Minister Kostyantyn Gryshchenko.
“Ukraine intends to take part in the implementation of the Southern Energy
Corridor project, through which Caspian gas is [set] to be supplied to Europe. With
this in mind, we are negotiating new routes of gas supplies with Turkey,”
Gryshchenko said in a recent written reply to the Hürriyet Daily News, adding
thatUkrainewas planning on achieving some arrangements in the near
future.
Cooperation between
Ukraine andTurkeyin the energy sector is a vital element of
enhancing the strategic partnership between the two states, said Gryshchenko,
who was inIstanbulover the weekend to participate in the
ministerial meeting of theBlack SeaEconomic Cooperation
Organization.
Ukraine has a great interest in TANAP, he said. “This implies, in particular,
the involvement of the leading Ukrainian companies that have extensive
expertise in the construction, maintenance and operation of transport and
energy infrastructure.”
Beneficial projects on many areas
Ukraine has already submitted an official application to the Shah Deniz
Consortium where it was outlined that Turkish and Azeri partners can benefit
from Ukraine’s transportation system, including gas storage facilities adjacent
to the European Union, he said. Gryshchenko saidUkraine
was committed to ensuring the uninterrupted transit ofRussiannatural
gas toTurkeyvia
Ukrainian territory in accordance with two long-term contracts which are in
force until 2023 and 2025, respectively.
“No one should have any doubts about this,” he said. Russian-Ukrainian gas
disputes in the past have interrupted the transit ofRussiangas to
Turkey.
Ukraine is seeking to diversify its cooperation in the energy field with
Turkey, according to Gryshchenko. “We view that we could implement mutually
beneficial projects not only in pipeline construction, but also in the
construction of underground gas storages, oil pipelines, as well as the joint
exploration and production of hydrocarbons in theBlack Seashelf and
in third countries,” he said.
Meanwhile, Gryshchenko saidUkraineprovided the shortest, cheapest
and most reliable
route for hydrocarbons’ transportation toEUcountries. “Ukraine has
a sophisticated gas-transportation network which is supported by [large] gas
storages and infrastructure. This, in turn, [leads one to question] the
economic viability of the construction of new, costly pipelines that bypass
Ukraine.”
Work to continue on free trade agreement
The Ukrainian foreign minister said he believed economic relations between Kyiv
andAnkarawould develop dynamically. “We are looking forward to
implementing a goal set by President [Viktor] Yanukovych and Prime Minister
[Recep Tayyip] Erdoğan to make the trade turnover reach a level of $20 billion
by 2015,” he said.
Work on a free trade agreement is continuing, as four rounds of negotiations
were held, including one special round of consultations on liberalizing the
trade in agricultural goods.
“We have agreed on most provisions of the draft agreement. Now we need to reach
a consensus on terms of access to the goods markets and solve the issues of
export duties and export support,” he said.Ukraineis facing a
significant loss of transit revenue resulting from the launch of the Nord Stream
pipeline project, enablingRussiato ship its natural gas toEuropevia
the north.
As the loss of revenue is also expected to increase with the launch of the
South Stream project to transportRussiangas under the Black Sea,Ukrainehas
stepped up its efforts to seek new markets for its exports. It reportedly wants
to enter the Turkish agricultural market, but the desire is said to have been
met by hesitation from Ankara.
“Our position is based on WTO principles and norms and implies that we must
strive for a comprehensive abolition of duties on both industrial and
agricultural goods and that transitional periods should be applied only on the
most sensitive goods,” Gryshchenko said.