Ukraine’s President hints at leasing natural gas pipelines to Russia

In a move considered to be reaching out to Moscow as opposed to Western Europe, Ukrainian President Viktor Yanukovych has hinted that the country may lease its natural gas transit system to countries including Russia.

The President pointed out in a recent televised Q&A session, that renting out the pipeline which currently carries Russian gas to Europe would provide means to maintain the extensive gas transit and storage system and ensure that Ukraine receives profit for pumping the gas.

"If the gas transit system brings money, Ukraine will have an opportunity to modernise this system and maintain it in a safe condition," Yanukovych said.

In the past, disputes between Kiev and Moscow concerning gas prices and transit fees have caused disruptions, which led to millions of Europeans suffering from no heating in Winter.

The move to cosy up to Moscow is likely to face domestic political opposition. Ukraine, whose economy is in recession, has been petitioning Russia for a markdown for its natural gas, and it seems like an agreement could be made in exchange for relinquishing control over Ukrainian gas pipelines. However, pro-Western opposition parties in Ukraine see the pipelines as a symbol of the country’s independence and disagree with this development.

Yanukovych has also assured not to raise household gas prices – a very unpopular move which is a key stipulation to unlocking International Monetary Fund aid. The statement suggests that Kiev is betting on stronger ties with Russia rather than meeting IMF austerity requirements.

Edited from various sources by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/25022013/ukraine%E2%80%99s_president_hints_at_leasing_natural_gas_pipelines_to_russia_321/