Ukraine Looks to German Companies for Gas Transport Network Update

Ukraine's Minister of Foreign Affairs met with his German counterpart on Tuesday, according to a note released by the Ukrainian government. Ukraine is looking for cooperation with German companies such as Siemens AG, Deutsche Bank and Ferrostaal to renovate its gas transportation network.

“Our ambition is to extend this project to the whole Ukrainian gas transportation system,” said Foreign Minister Leonid Kozhara, referring to the Soyuz gas pipeline, an existing project in collaboration with the three German companies.

The attempt to gain ground in Europe comes while Ukraine is at loggerheads with Gazprom for the transit of Russia’s gas.

According to Reuters, Ukraine state company Naftogaz is negotiating an extension of repayment terms of a $2 billion loan from Gazprombank, which fell due last month. Gazprombank asked Ukraine to provide state guarantees to accept the request.

Recently, Alexey Miller, Chairman of Gazprom’s Management Committee, met Ukranian Vice Prime Minister Yury Boiko to discuss  transit commitment and gas storage facilities.

Ukraine's government is keen to produce locally to ease dependence on Russian gas. Ukraine also continues to make ambitious plans to decrease national energy consumption, switch its power stations from natural gas to coal, build an LNG terminal, and open reverse flows of gas from Europe.