Saturday, April 27, 2013

Ukraine Seeks Privatization of Gas Pipelines

Ukraine's gas pipelines have been the focus of considerable controversy lately, vis-a-vis the country's quarrel with neighboring Russia over energy contracts and Ukraine's practice of re-selling Russian gas to countries farther to the West. Now, it appears the Ukrainian government is pushing to allow for privatization of pipelines of state-owned gas enterprises, notably Naftogaz. According to news site Ukrainian News, the proposed legal changes would allow the government to alienate fixed assets, shares, and stakes in state-owned enterprises engaging in gas transportation and storage.

According to news sites, the initiative is related to the wider efforts of Ukraine and the EU to diversify energy supply and transport methods, and establish a tripartiate consortium with Ukraine, Russia, and the EU to manage Ukraine's gas transport system. Is this perhaps another step towards Ukraine's integration into the EU?

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