Economic Calendar

Friday, January 9, 2009

EU Gas Monitors Head to Ukraine as Talks With Russia Continue

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By Rob Verdonck

Jan. 9 (Bloomberg) -- European Union monitors are scheduled to arrive in Kiev today as OAO Gazprom and Ukraine seek to settle a natural-gas pricing dispute that has affected shipments to at least 20 countries.

The monitors will arrive at 5 p.m. local time, NAK Naftogaz Ukrainy Deputy Chief Executive Officer Volodymyr Trikolich said at a press conference today. The Ukrainian utility will also allow “authorized” Gazprom experts to access its pipelines.

Russia, Ukraine and the EU yesterday struck a deal on monitoring gas flows, paving the way for the resumption of deliveries to the 27-nation bloc. The EU said it’s “imperative” that shipments resume “without any further delay” after the three parties agreed on the details of the mission. The deal hasn’t yet been signed by all parties.

The monitoring group will consist of 18 experts and four European Commission members, the EU said.

RWE Transgas, the Czech Republic’s biggest gas trader, has already dispatched an observer to join the monitoring team, the company said in an e-mailed statement. Two representatives of OMV AG, Austria’s largest oil and gas company, will also join the group.

GDF Suez SA said it will send four Russian-speaking technicians as part of the European team, while Italian Industry Minister Claudio Scajola said representatives of Eni SpA will also join the monitoring group. E.ON AG, Germany’s biggest utility, said it will send pipeline experts to Ukraine.

Russia earlier proposed that the mission should consist of 17 members, representing Russia, Ukraine, the European Commission, gas producers, purchasers, transporters and independent experts, according to a statement on Gazprom’s Web site. The companies listed include Gazprom, Naftogaz, GDF Suez, E.ON Ruhrgas AG, Wingas Transport GmbH, Eni, RWE Transgas and Slovensky Plynarensky Priemysel SP.

To contact the reporter on this story: Rob Verdonck in London at rverdonck@bloomberg.net




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