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Cornered by Russia, Ukraine eyes Turkmen gas

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Sept. 12, 2011, 8:29 p.m. | Politics — by Reuters

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Ukraine, embittered by Russia's unwillingness to cut prices for its gas, said on Monday, Sept. 12 it would try to resume imports of the fuel from Turkmenistan. Ukraine is struggling to pay high gas prices under a 2009 contract with Russia and has asked for a reduction in price. Russia initially suggested concessions were possible, but insisted that Ukraine sell Moscow its pipeline grid or join a customs union of Russia, Kazakhstan and Belarus in return.

Kiev has sought ways to break free of its dependence on Russian gas, but without significant reserves of its own, it must seek supplies elsewhere in the region if it is to wean itself off of Russian supplies.

Ukrainian President Viktor Yanukovich has threatened that Kiev could take Moscow to court in a bid to review the gas deal.

On Monday, he arrived in the reclusive Central Asian nation of Turkmenistan, from where Ukraine had been buying natural gas directly until 2003. After that and until the 2009 gas deal with Moscow, Turkmen gas was sold to Kiev via intermediaries.

"It is in Ukraine's interests to resume our full-scale cooperation in the oil and gas sector," Yanukovich told reporters in the Turkmen capital Ashgabat after holding talks with his Turkmen counterpart Kurbanguly Berdymukhamedov.

"We will work more actively on defining our goals and concrete projects, as well on the ways of implementing them, including the neighbouring countries, through which energy resources are transported."

Yanukovich did not elaborate.

Berdymukhamedov, whose word is final in his 5-million nation which holds the world's fourth-largest natural gas reserves, said: "We have at our disposal whatever is needed to bring our cooperation to a new level." He also gave no further detail.


Dependence on Russia

Energy-starved Ukraine, which buys up to 60 percent of the natural gas it consumes, has to import the fuel across Russia via the pipeline network of Russian gas export monopoly Gazprom.

Besides buying gas from Russia, Ukraine also transits it further to Europe, and the row between Kiev and Moscow has already evoked memories of similar disputes in recent years which cut gas supplies to European consumers in the winter.

Turkmenistan, Central Asia's largest producer and exporter of natural gas, is for its part keen to lessen its dependence on gas exports to Russia, supplies to which fell sharply in 2009 due to the global crisis.

In April 2009, Gazprom halted Turkmen gas imports until the start of 2010 after a pipeline blast disrupted flows.

Ashgabat, cherishing ambitious hopes to triple natural gas output to 230 billion cubic metres by 2030 and export 180 bcm, has sought to build alternative gas export routes.

The European Union said on Monday it had agreed to negotiate a treaty with Azerbaijan and Turkmenistan to bring their natural gas to Europe across the Caspian Sea.

The proposed pipeline, part of a planned corridor of links known as the Southern Corridor, is designed to reduce EU dependence on Russian gas imports.

Tring to boost gas exports and bypass Russia, Turkmenistan has boosted supplies to next-door Iran, launched a pipeline to China and made progress on the planned TAPI pipeline designed to run to Pakistan and further to India via Afghanistan.
The Kyiv Post is hosting comments to foster lively debate. Criticism is fine, but stick to the issues. Comments that include profanity or personal attacks will be removed from the site. If you think that a posted comment violates these standards, please flag it and alert us. We will take steps to block violators.
lee ezekiel Sept. 12, 2011, 8:52 p.m.    

try it out, that way ukraine can be able to make independent decisions, russians need to understand this. try mr. sponge.

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Anonymous Sept. 12, 2011, 11:29 p.m.    

LOL, Where is the news?

Ukraine already tried to import Turkmenistan gas - this is how RosUkrenErgo was created, and the Ukraine people screwed, heh, heh, heh :D

&quot;RosUkrEnergo is a Swiss-registered venture company that transports natural gas from Turkmenistan to East European countries. 50 percent of the company is owned by Gazprom, through its daughter Swiss-registered Rosgas Holding A.G., and another 50 percent by Swiss-registered private company Centragas Holding A.G., acting on behalf of a consortium of GDF Group[1] [2] [3] [4] Dmytro Firtash (45%) and Ivan Fursin (5%).[5]

The company was created in July 2004 in a deal by former Ukrainian President Leonid Kuchma and his Russian counterpart Vladimir Putin to replace Eural Trans Gas.[6] Until 2006 the company acted as a middleman between Turkmenistan and Ukraine. The company also sells Turkmenistan gas to Poland. Due to an agreement between Gazprom and Naftohaz Ukrainy, from 2006 till January 2009 the company supplied all of Ukraine's natural gas imports from Russia and other Central Asian countries, in addition to Turkmenistan.&quot;

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Anonymous Sept. 14, 2011, 4:25 p.m.    

Read the report by Global Witness from April 2006.

&quot;It's a Gas - Funny Business in the Turkmen-Ukraine Gas Trade&quot;

www.globalwitness.org

Which includes references to Ukraine's Naftohaz Ihor Bakai - who vamoosed from Ukraine, and noone knew where he was, until his stupid wife posted pictures of them for a high school reunion.

When Ukraine imported gas from Turkmenistan, in the good old days, it was on a barter system.

The thugs in Ukraine sent --- galoshes ---- to the thugs in Turkmenistan.

Winter rubber boots.

Why would anyone in Turkmenistan need winter rubber boots???????

It was &quot;galoshes for oil.&quot;

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Anonymous Sept. 13, 2011, 6:40 p.m.    

Putin is making kaki in his little pants.

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Anonymous Sept. 13, 2011, 11:16 p.m.    

Turkmenistan is a friend of Russia they wont give anything without permission.

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Anonymous Sept. 13, 2011, 8:16 p.m.    

It won't work. There is no cheap gas in the world anymore! Yanukonvict needs to understand that.

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