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 Ukraine needs European company for GTS to keep transit, - Koboliev

In order to preserve its status of transit country, Ukraine should hire a European company to manage its gas transportation system.

Naftohaz Ukrainy (Ukrainian oil and gas) CEO Andrii Koboliev said, Censor.NET reports citing Interfax-Ukraine.

"The ultimate goal of establishing a separate operator is to attract a European company. So that they will have their interest. In fact, we want to share part of our business for them to help us guarantee that transit across the Ukrainian territory will remain after 2019," he said on air of 5 Channel station late on Wednesday.

Koboliev said three companies are showing interest in managing the Ukrainian GTS with negotiations being underway.

Read more: Poroshenko believes Russia will transit gas through Ukraine even after 2019

The Naftohaz CEO recalled that if Russia's Gazprom succeeds in constructing Turkish Stream and Nord Stream II pipelines, Moscow may give up transit across Ukraine.

"In my opinion, it will be very difficult to retain transit across our territory without involving a European company to manage it, because out there we have a powerful opponent actually coming up with an interesting proposal to Europeans, sort of let us build another pipeline for you with our own money," he said.

Read more: Gas transit across Ukraine grew by 23 percent in 2016, - Hroisman

Koboliev added refusing from Russian gas transit via the Ukrainian GTS would result in increase in the cost of transit for Europe over the lack of additional competition.

"The second step will be difficult for Europeans. If it comes true and the Ukrainian GTS will no longer transit gas, this gas, bypassing Ukraine, will turn expensive. Everything comes at a price, but unfortunately not everyone understands this," he said.

Read more: Ukraine enters 2017 with 12 billion cubic meters of gas in its storage, - Ukrtranshaz
 
 
 
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