Ukraine's Naftogaz and Russia's Gazprom could modernize Ukraine's gas transportation system without EU assistance. The two energy companies are discussing the possibility of establishing a special vehicle to modernize and operate the system. Head of the Russian Gas Society Valery Yazev said the idea of creating an international consortium of European, Ukrainian and Russian companies to modernize the gas pipelines could remain purely theoretical.
Analysts value Naftogaz at $17 billion and Gazprom at $170 billion, and say the Russian energy giant could contribute a production asset worth $15-$17 billion to the joint venture. Some Ukrainian members of parliament say pipelines could be laid to Russian deposits if Russia contributes gas fields to the project.
Similar projects have been realized in Poland, Slovakia and Belarus, said Yevgeny Minchenko, director of the International Institute for Political Expertise. The EU is unlikely to object to this approach since it will save money, and reliable gas transit is the EU's primary concern.
