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Europe:Ukraine terms JV with Gazprom

Europe:Ukraine terms JV with Gazprom

Write: Agosto [2011-05-20]
Kiev supports the idea of forming stronger ties with Russian gas monopoly Gazprom but talks on a formal venture are "only proposals," the government said.

Gazprom announced last week that it agreed to set up two new joint ventures with Ukrainian energy company Naftogaz. Gazprom said both sides agreed to set up joint ventures for coal bed gas production in Ukraine and for the Palasa structure development offshore in the Black Sea.

The issue of a joint venture was first raised in April when Kiev was pushing for a better natural gas deal with Russia.

But Ukrainian Prime Minister Mykola Azarov said the talks of a joint venture weren't much more than preliminary discussions, the National News Agency of Ukraine reports. "These are only proposals," he was quoted as saying.

"I support the idea of considering all of these proposals in the context of all our mutual relations in the sphere of gas supplies and gas transit."

He said he was considering the best way to make profits for his country, which has struggled with its ties to its former patrons in the Kremlin. (