RIA Novosti: South Stream May Displease Buyers of Ukrainian Gas Network– Diplomat

The South Stream gas pipeline may dissatisfy Western partners seeking to gain control over Ukraine’s gas transit network, Russia's ambassador to the EU, Vladimir Chizhov, told RIA Novosti in an interview Friday.

“I understand the motives of those who want to buy the Ukrainian gas transit network and also those in Kiev who are calculating how much it can be sold for. Of course, they do not need gas-supply route diversification and the possibility of bypassing Ukraine for supplying Russian gas to Europe,” Chizhov said.

Investors from Europe and the powerful EU executive branch, the European Commission, have shown interest in forming a new operator for the Ukrainian gas transit network, the CEO of Ukraine’s gas monopoly Naftogaz, Andriy Kobolev said Monday.

Earlier in June, the country’s Cabinet of Ministers presented a draft law to the parliament that would allow the government to create a gas transit network operator, with 49 percent owned by US and EU investors. The draft law provides the operator with management and/or concession or rent rights for the country’s major pipelines and underground storage units.
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