Moscow, Nov. 17 (Interfax) - A joint venture between Gazprom and Naftogaz Ukrainy is a more realistic option for developing Ukraine's gas pipeline system than formation of a multinational consortium, Gazprom CEO Alexei Miller said.
"Creation of a joint venture is a necessary and absolutely logical step in the business of developing cooperation between the companies. Gazprom and Naftogaz Ukrainy would receive the opportunity to implement specific projects on mutually beneficial terms and maximally effectively. In contrast to a multi-party consortium, which has been discussed without result for a number of years, our JV would become a realistic tool for conducting business," Miller said.
The idea of a multinational gas transportation consortium was set out in June 2002 in a joint declaration from three heads of state: Ukrainian President Leonid Kuchma, Russian President Vladimir Putin and German Chancellor Gerhard Schroeder. The goal was cooperation in the operation of Ukraine’s gas pipeline system and ensuring uninterrupted flows of natural gas from Russia to Europe.
Naftogaz and Gazprom formed a consortium in 2002. The Russian side believed the consortium would manage Ukraine’s existing gas transportation system and implement new joint projects in natural gas exploration. However, the Ukrainian side insisted that it would only involve new projects. No German or French participants joined the consortium.
Miller met in Moscow on Wednesday with Ukrainian Fuel and Energy Minister Yuriy Boiko, the Gazprom press center reported.
The meeting looked at various issues surrounding formation of a joint venture between Gazprom and Naftogaz Ukrainy. Miller and Boiko agreed to commence a valuation of assets that could be included in the joint venture.
