Ukrainian energy minister pledges smooth energy transit to EU

Ukraine will provide reliable energy transit to the European Union, Ukrainian Energy and Coal Industry Ministry quoted Minister Yuriy Boiko.

The minister gave the assurances at the Brussels meeting with European Energy Commissioner Gunther Oettinger on Friday, September 21.

Boiko stressed that Ukraine had created every condition for the uninterrupted transit of Russian gas to Europe.

Ukraine is preparing for the fall and winter season, as well, the minister said.

The sides discussed European investments in the Ukrainian energy sector and modernization of gas pipelines, the pipelines' readiness for the heating season, the possibility of gas supply from EU countries to Ukraine, and the Ukrainian updated energy strategy for the period until 2030.

"We had a vast agenda with the focus on financing, investments in our energy sector. Financing by European banks is particularly important to us. One agreement will be signed today (on September 21), and there will be other agreements with regard to financing of our gas pipelines and upgraded atomic energy security," Boiko said.

Gas transit through Ukraine dipped year on year by 22% (by 15,815.5 million cubic meters) in January-August 2012 to 56,163.3 million cubic meters. The August decline stood at 11.9% (752.3 million cubic meters) to 5,573.8 million cubic meters.

Ukraine and the European Investment Bank signed an agreement on September 31 on the bank's allocation of EUR 200 million for the reconstruction of Ukrainian hydropower plants.

The project is bound to increase the efficiency, technical and environmental safety of 22 hydropower facilities of Ukrhydroenergo along the River Dnipro and to increase the total capacity of the hydropower plants by 100 megawatt.

The project is valued at EUR 690 million. The European Investment Bank and the European Bank for Reconstruction and Development will each assign EUR 200 million, and Ukrhydroenergo will contribute the rest.