Azernews.Az

Seeking to diversify its gas supplies by participating in projects providing alternatives to Russian gas, Ukraine seeks to participate in TANAP project which will carry Azeri gas to Europe via Turkey, Hurriyet daily newspaper reported on Monday.

Russia has started construction of the South Stream gas pipeline in an effort to diversify its supply routes to Europe by bypassing Ukraine, but Kyiv is also seeking to diversify its gas supplies by participating in projects providing alternatives to Russian gas.

Ukraine is willing and ready to participate in the Trans-Anatolian Pipeline Project (TANAP), which will carry Azerbaijani gas to Europe via Turkey, said Ukrainian Foreign Minister Kostyantyn Gryshchenko.

"Ukraine intends to take part in the implementation of the Southern Energy Corridor project, through which Caspian gas is [set] to be supplied to Europe. With this in mind, we are negotiating new routes of gas supplies with Turkey," Gryshchenko said in a recent written reply to the Hurriyet Daily News, adding that Ukraine was planning on achieving some arrangements in the near future.

Cooperation between Ukraine and Turkey in the energy sector is a vital element of enhancing the strategic partnership between the two states, said Gryshchenko, who was in Istanbul over the weekend to participate in the ministerial meeting of the Black Sea Economic Cooperation Organization.

Ukraine has a great interest in TANAP, he said. "This implies, in particular, the involvement of the leading Ukrainian companies that have extensive expertise in the construction, maintenance and operation of transport and energy infrastructure."

Beneficial projects on many areas

Ukraine has already submitted an official application to the Shah Deniz Consortium where it was outlined that Turkish and Azeri partners can benefit from Ukraine's transportation system, including gas storage facilities adjacent to the European Union, he said. Gryshchenko said Ukraine was committed to ensuring the uninterrupted transit of Russian natural gas to Turkey via Ukrainian territory in accordance with two long-term contracts which are in force until 2023 and 2025, respectively.

"No one should have any doubts about this," he said. Russian-Ukrainian gas disputes in the past have interrupted the transit of Russian gas to Turkey.

Ukraine is seeking to diversify its cooperation in the energy field with Turkey, according to Gryshchenko. "We view that we could implement mutually beneficial projects not only in pipeline construction, but also in the construction of underground gas storages, oil pipelines, as well as the joint exploration and production of hydrocarbons in the Black Sea shelf and in third countries," he said.

Meanwhile, Gryshchenko said Ukraine provided the shortest, cheapest and most reliable route for hydrocarbons' transportation to EU countries. "Ukraine has a sophisticated gas-transportation network which is supported by [large] gas storages and infrastructure. This, in turn, [leads one to question] the economic viability of the construction of new, costly pipelines that bypass Ukraine."

Work to continue on free trade agreement

The Ukrainian foreign minister said he believed economic relations between Kyiv and Ankara would develop dynamically. "We are looking forward to implementing a goal set by President [Viktor] Yanukovych and Prime Minister [Recep Tayyip] Erdoğan to make the trade turnover reach a level of $20 billion by 2015," he said.

Work on a free trade agreement is continuing, as four rounds of negotiations were held, including one special round of consultations on liberalizing the trade in agricultural goods.

"We have agreed on most provisions of the draft agreement. Now we need to reach a consensus on terms of access to the goods markets and solve the issues of export duties and export support," he said. Ukraine is facing a significant loss of transit revenue resulting from the launch of the Nord Stream pipeline project, enabling Russia to ship its natural gas to Europe via the north.

As the loss of revenue is also expected to increase with the launch of the South Stream project to transport Russian gas under the Black Sea, Ukraine has stepped up its efforts to seek new markets for its exports. It reportedly wants to enter the Turkish agricultural market, but the desire is said to have been met by hesitation from Ankara.

"Our position is based on WTO principles and norms and implies that we must strive for a comprehensive abolition of duties on both industrial and agricultural goods and that transitional periods should be applied only on the most sensitive goods," Gryshchenko said.