Archive 2002

• 25.11.2002

  The Ukrainian-Russian Gas Consortium

  (Code:S17)

  We comment on the Ukrainian-Russian Gas Transit Consortium signed in October 2002. In general, we support its intention to secure reliability of supply of Russian gas to European markets through Ukraine. However, since even both partners of the consortium together do not have the funds available to finance badly needed investment measures in the pipeline system, we also stress the need to include a third-party investor. Since profitability of gas transit through Ukraine depends on future developments on European gas markets, the extent to which bypass routes for Russian gas can be explored and used in the future and supply changes of other gas-exporting countries, we opt for a flexible scheme in which specific investment amounts are determined in response to changing profitability.

  Attached file  (88.6 kb)
  Authors:  Christian von Hirschhause, Pavel Ferdinand
  Tags:  German Advisory Group
  Research spheres:  Real sector