This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EU Ready To Invest Into Ukrainian Gas Transporting System Modernization

KYIV, Ukraine, October 25, 2012 /PRNewswire/ --

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 Ukraine, reports 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.

In February 2012, 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 Europe. Ukraine expects to receive 34 percent share of the consortium, while Europe and Russia get 33 percent each.

Reportedly, 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.

In May 2012, 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 Russia and Ukraine, should any conflicts occur.

SOURCE Worldwide News Ukraine

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs