Official implies Russians interfering with Ukrainian gas market

Vladyslav Kaskiv, the head of the State National Projects Agency, implied in an interview published on Nov. 29 that Russian officials might have pressured Spanish firm Gas Natural Fenosa from investing in a project to build an LNG Black Sea terminal to provide the Ukrainian market with natural gas. “We understand under what pressure they were led to make this decision,” he told the Ukrayinska Pravdsa news site, referring to Gas Natural Fenosa’s Nov. 28 statement that it wasn’t pursuing the terminal project that was portrayed as the subject of a Nov. 26 signing ceremony. He added, “Many international companies that work on the European and world markets find themselves in serious conditions of pressure and conflicts of interest.” The EUR 846 mln project to build the LNG terminal, with a capacity of up to 10 bcm of natural gas p.a., was adopted in August and the Ukrainian government is actively seeking partners.

Zenon Zawada: The scandal involving Kaskiv and Gas Natural Fenosa is the latest chapter in the ongoing attempts by the Ukrainian government to get cheaper gas from Gazprom. We believe that Gas Natural Fenosa was in talks to pursue the project, which fell through at the last minute, causing Kaskiv to stage a Nov. 26 press stunt,which involved a Spanish lawyer posing as an authorized representative of Gas Natural Fenosa. It was a publicity gambit against Gazprom that unraveled. The extent to which Ukrainian officials are willing to engage in such stunts only further confirms the difficult position they find themselves and officials can expect ongoing difficulties with Russian interference, claims from Kaskiv that are credible. However, the LNG terminal project remains very prospective in reducing Ukrainian dependence on Russian gas and other global development firms are considering the project.