We nearing deep reformation of national gas market - President Yushchenko

In his interview to the Inter TV channel, President Viktor Yushchenko has commented on the causes and effects of signing on March 23 in Brussels of the declaration on the modernization of the Ukrainian gas transit system with the European Commission, the European Investment Bank, EBRD and the World Bank. Viktor Yushchenko called this step to modernize the GTS for European money as a common initiative.

The President reminded that a dialogue to that effect had started three years ago. The point at issue was how to near the Ukrainian GTS, without changing its status, to a European gas market in order to reach an agreement on energy space with the goal to integrate Ukraine with the European energy community and link its energy networks with that of the European Union.

The Head of State noted that signing of the Brussels document is an actual start for deep reformation of the national gas market and is an outcome of the common interest of Ukraine and Europe in this process.

V. Yushchenko confirmed that in the event of the modernization of the Ukrainian GTS and its integration with the EU energy systems, the Europeans will be buying gas at the Ukraine-Russia border in future, as is customary worldwide. As until now, 'the model was that Ukraine would have not seemed to be in the European transit policy, and gas, which had been transited to Europe, was sold not on Ukraine's eastern border, but on its western one," he said.

Asked by reporters whether a transfer to paying for the transit by the European party will not conflict with the Ukraine-Russia gas deals signed for 10 years, President Yushchenko noted that 'We should seek for partners from the point of view of forming the principles of the transit price'. He recalled that Ukraine now gets from Russia USD 1.7 [1,000 cu per 100km -ed.] for the transit, which is 2.5-3.5 times less against the European prices.

"No European gas transit company would have agreed to transit gas at the rate of USD 1.7, because this is unprofitable position," he said.

UKRINFORM