Ukraine to benefit from Russian-Turkish energy disputes

On June 8 the Kommersant Ukraina newspaper stated that Ukraine is offering Moscow a very profitable way to transport Central Asian gas very cheaply to European countries. Ukraine wants to become a player in international gas deals and had offered very comfortable rates for transporting gas through its territory.

Ukraine has the capacity to transport 35-40 billion cubic metres of gas through its territory annually but there is potential to increase this to 60 billion cubic metres if an extra USD 4-5 billion is invested. Since the South Stream project will cost around USD 26 billion, Ukraine’s proposal is quite tempting. As relations between Ukraine and Russia are warming this might become an option.