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The EU is set to contribute to the modernization of the Ukrainian gas transporting system as soon as
Ukraine finalizes terms of the project, said the Head of the Delegation of the EU to Ukraine Jan Tombinski.
Ukraine will come up with the project terms after receiving the results of the GTS assets valuation.
At the moment, Baker Tilly Ukraine is valuing the pipelines and storage facilities of Naftogaz. The company won the
USD 510,000 tender to complete the work in
Bloomberg. Previously, the valuation of assets of the Ukrainian gas transporting system was held in 2007 - the system was estimated to be worth almost
USD 25 billion - and in 2009, then the price was nearly
USD 10 billion.
Currently, Ukrainian gas transporting system is owned and managed by the state company Naftogaz. The country plans to restructure the company in order to divide the functions of gas transporting, purchasing, and selling between legally independent entities. In
October 2012, the Cabinet of Minister of
Ukraine discontinued the monopoly of Naftogaz on the sale of imported gas.
Ukraine called for a tripartite gas consortium, featuring
Ukraine, the EU, and
Russia as managers of
Ukraine's GTS. The modernization of the system would become one of the main tasks of the consortium. It would be responsible for management of the system and ensuring stability of gas supply to
Ukraine expects to receive 34 percent share of the consortium, while
Russia get 33 percent each.
Ukraine uses about two thirds of the estimated capacity of its gas transporting system, which already supplies some 70 percent of Russian gas to
Europe. Renovation of the system would allow for the increase of the transfer capacity. It would also be beneficial since building alternate gas transporting routes requires time, financial and human resources, and creates unnecessary threats to the environment, emphasized President of Ukraine Viktor Yanukovych at the time.
Russia announced its terms for joining the consortium - the ownership of the gas transporting system had to be handed over to the consortium.
Russia perceives the third - European - participant in the consortium as a possible referee between
Ukraine, should any conflicts occur.
SOURCE Worldwide News Ukraine