Ukraine Considers More Gas From Europe

Ukrainian Prime Minister Mykola Azarov has said that Ukraine would like to buy natural gas from Europe as it can be obtained more cheaply and without punitive contract conditions.

As recorded on the Ukraine government website, Azarov noted that European supplies are now considerably cheaper than Russian gas. He said his country can receive gas from Europe on much better terms than from Russia: there is no requirement of "take or pay" in European contracts, and no penalties for arrears, he said. 

The Ukrainian leader said that he is personally overseeing the project for the modernization of Ukraine's gas transport system (GTS). He also noted that Ukraine has previously had a positive experience when purchasing EU gas.

Azarov was speaking during a meeting with representatives of the German company Ferrostaal. Modernisation of the Ukrainian GTS is being carried out with Ferrostaal and Deutsche Bank. The prime minister said the overhaul was extremely relevant to reform of Ukraine's gas supplies.

"Modernization of our gas transportation system is extremely relevant. In this respect, implementation of the pilot project on the modernization of the equipment at the Bar booster station of the Soyuz pipeline and the Deutsche Bank’s participation in the project is important," he said.

 Meanwhile the Kyiv Post reported that the EU has no official comment yet on the latest discord over gas prices between Ukraine and Russia. Gazprom, the Russian state company, has demanded Naftogaz Ukrainy  pay €5 billion in compensation for importing less natural gas in 2012 than agreed.