12:17 01.12.2014

Yatseniuk hopes to buy 120 km of Ukrainian pipes for Urengoi-Pomary-Uzhgorod gas pipeline repairs at expense of EIB, EBRD loans

2 min read
Yatseniuk hopes to buy 120 km of Ukrainian pipes for Urengoi-Pomary-Uzhgorod gas pipeline repairs at expense of EIB, EBRD loans

Ukrainian Prime Minister Arseniy Yatseniuk hopes that Ukrainian producers will win a tender to supply pipes to repair a 120 km stretch of the Urengoi-Pomary-Uzhgorod gas pipeline whose upgrade is financed at the expense of loans from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

"The result of the implementation of this [pipeline modernization] project will be the replacement of 120 km of pipes. A new pipeline will be laid, which will give us a chance to call a tender to buy pipes, from Ukrainian producers, I hope. This will additionally contribute to the Ukrainian economy," the premier said at the official ceremony when a loan agreement with the EIB was signed in Kyiv on Monday.

As was reported, Ukraine's Cabinet of Ministers on October 22, 2014, issued resolution No. 1143-r to borrow up to EUR 150 million from the EIB and up to $200 million from the EBRD to upgrade the Urengoi-Pomary-Uzhgorod gas pipeline. In keeping with the resolution, the funds will be transferred to state-run Ukrtransgaz as a subloan at 2% per annum to implement the pipeline modernization project.

The project for the upgrading of the gas pipeline is designed for four years when 119 km of the pipeline, which is 1.4 meters in diameter, should be replaced with new pipes and two gas compressor stations should be modernized.

In Ukraine, large-diameter pipes for gas pipelines are produced by Metinvest Group's Khartsyzsk pipeline, which is located on the territory of Donetsk region, controlled by pro-Russian separatists.

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