17:57 22.10.2012

Gazprom expects Ukraine to provide assessment of gas transport system in near future

2 min read

Russian gas giant Gazprom expects Ukraine to provide an independent international estimate of its gas transportation system in the near future.

According to Gazprom deputy CEO Alexander Medvedev, this estimate will serve as a basis for negotiations for forming a consortium, which will develop Ukraine' gas transport system.

"No, we haven't received it yet. But we hope to get it in the near future," Medvedev told journalists on Monday.

He said that Gazprom is satisfied with the rate of gas collection in Ukrainian underground gas storage facilities.

"Yes. We are implementing a joint program," he added.

A sufficient gas reserve in Ukrainian underground storage is necessary for the stable transit of Russian gas to Europe. Ukraine's gas transport system operates according to a substitution principle: large volumes of Russian destined for transit is actually needed for Ukraine's industrially developed east and gas in underground storage in Ukraine's west is shipped for supply to Europe. This past summer, Gazprom presented Naftogaz Ukrainy a $2 billion advance for transit in order to finance gas collection in underground storage. Gas supply to countries such as Poland, Slovakia, Hungary, Romania, Serbia, Turkey, Italy, Greece and Austria rely on stable transit of gas via Ukraine.

Ukrainian President Viktor Yanukovych said during negotiations with Russian President Vladimir Putin that "We hope to reach an economically viable and fair formula for pricing for our country."

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