Ukraine in talks with Turkmenistan to resume gas supplies
By Aynur Jafarova
The resumption of gas supplies to Ukraine was the key topic of the discussions held among Ukrainian Minister of Ecology and Natural Resources Oleg Proskuryakov with Turkmen Deputy Prime Minister Baymurad Khojamukhamedov and chairman of the Turkmengeology state corporation Toreh Yagshymuradov.
During his visit to Ashgabat, Proskuryakov also discussed the participation of Ukrainian companies in the mineral exploration in the Turkmen territory.
The Ukrainian Ministry reported that during the talks the parties confirmed the mutual interest and readiness for constructive cooperation.
Proskuryakov said that Ukraine has the potential for cooperation in the oil and gas, energy, transit, science and technology sectors.
He said that Ukraine is interested in establishing cooperation with energy companies of Turkmenistan, in particular in the implementation of joint projects in the sectors of fuel and energy complex.
Earlier in February, Ukrainian President Victor Yanukovych voiced his country's interest in resuming gas supplies from Turkmenistan and willingness to deepen cooperation in this field.
He said that Turkmenistan and Ukraine are well positioned to join efforts to explore alternative routes for gas supplies, both for their own needs and further exports to Europe.
Experts point out that Ukraine's main interest in Turkmenistan is associated with the country's vast natural gas reserves. Kiev sees Turkmenistan as a competitive energy source.
Ukrainian officials repeatedly stressed that Ukraine is interested in cooperation with Turkmenistan, especially in the energy sector, as the country aims to reduce its energy dependence from Russia.
Ukraine imports up to 60 percent of the natural gas. Russia is the main gas exporter to Europe and Ukraine, however, there is a problem related to the price of Russian gas.
In early 2006 Russia significantly increased the price of gas exported to Ukraine to bring it in line with market levels. The dispute between Russian gas giant Gazprom and Ukraine over natural gas prices started in March 2005. The two countries were unable to reach an agreement to resolve the dispute and Russia cut gas exports to Ukraine on January 1, 2006.
It is known that the conventional route - Central Asia-Centre (CAC) gas pipeline, which runs through Russia, is below capacity, while the Trans-Caspian gas pipeline, which is to be laid from the Turkmen coast of the Caspian Sea to Azerbaijan, where it will be linked to the Southern Gas Corridor, is still under consideration.
Therefore, Ukraine has been looking for a way to get direct deliveries of Turkmen gas. Kiev previously expressed desire to directly purchase about 5 billion cubic meters of Turkmen gas annually.
Ashgabat is also interested in new markets, including the early access of its energy resources to Europe. In an attempt to increase gas exports and bypass Russia, Turkmenistan has boosted supplies to 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.