Yanukovych's gas consortium plans come under criticism from Tymoshenko

MOSCOW. March 6. KAZINFORM Yulia Tymoshenko whose government was dismissed by Ukraine's parliament on Wednesday has criticized President Viktor Yanukovych's plans to create a gas transportation consortium.

photo: QAZINFORM

Yanukovych, who narrowly won the February 7 presidential election runoff in the ex-Soviet state over Tymoshenko , does not rule out that a gas transportation consortium could be established by Ukraine, Russia and the European Union.

"Establishment of a gas transportation consortium means giving away our strategic facility that costs at least $150 billion," Tymoshenko said on the Ukraina TV channel Friday, adding that the gas transportation system should remain under state control.

Ukraine's gas transportation system is Europe's second largest gas pipeline network and the main route for Russian natural gas supplies to European consumers. Back in early 2000s, Kiev and Moscow discussed the possibility of creating a gas transport consortium with the involvement of European partners to manage and modernize Ukraine's Soviet-era gas pipeline network.

However, when West-leaning President Viktor Yushchenko came to power in Ukraine as a result of the "orange revolution" in 2004-2005, the project was put on hold.

During Friday's visit to Moscow, Yanukovych said the consortium would be discussed after a new cabinet is formed in Ukraine.

Yanukovych, who was inaugurated on February 25 , said during his election campaign that he would seek better terms for Kiev in gas contracts signed with Moscow last year.

Russia and Ukraine have long fought over natural gas deliveries, jeopardizing supplies to Europe, which gets around a quarter of its gas from Russia. In the latest row at the start of 2009, Russia halted all deliveries via Ukraine's pipeline system for two weeks.

Last year's gas conflict was resolved when a deal on gas imports and transit was agreed by Russian Prime Minister Vladimir Putin and his then Ukrainian counterpart, Tymoshenko.

Yanukovych earlier also pledged to involve Russia in a gas consortium to modernize and manage the Ukrainian gas transportation system to ensure uninterrupted gas supplies to Europe.

Russia has consistently tried to get a stake in the Ukrainian gas pipeline network to modernize the system and ensure uninterrupted gas supplies to Europe. Ukraine has so far resisted these attempts, saying this would jeopardize its sovereignty, Kazinform refers to RIA Novosti.

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