Business news from Ukraine

UKRAINIAN PRESIDENT PROPOSES GERMANY TO MODERNIZE UKRAINIAN GTS

Ukrainian President Petro Poroshenko has warned Germany against participation in the Nord Stream 2 gas pipeline project, suggesting, as an alternative, the modernization of a transit gas pipeline passing through Ukrainian territory.
In an interview with German business newspaper Handelsblatt, extracts from which were published by the Ukrainian service of Deutsche Welle, Poroshenko noted that Nord Stream 2 was a political project that is financed by Russia and has no economic justification.
“Nord Stream 2 is a political bribe for loyalty to Russia, imposing an economic and energy blockade on Ukraine, which will hurt us greatly,” he said.
According to him, an alternative solution is the modernization of the existing transit gas pipeline that passes through Ukraine. Poroshenko also said that the development of the gas transportation infrastructure in Ukraine would not require multibillion investments.
On March 27, Nord Stream 2 AG received the permit for the construction and operation of the Nord Stream 2 pipeline system in the German exclusive economic zone (EEZ). The Nord Stream 2 gas pipeline is to pass across the Baltic Sea, connecting Russian suppliers with European consumers at over 1,200 km in length. The pipeline will have capacity for 55 billion cubic meters of gas per year. The project has an estimated cost of almost 10 billion euros. Gazprom’s partners in the project are Engie, OMV, Shell and two German companies BASF and Uniper.
In early April, the Verkhovna Rada urged foreign parliaments, governments and the international business community not to participate in the preparation, financing or lobbying of the construction of the Nord Stream 2 gas pipeline.

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