Accountants looking at the Ukranian gas transit network have put a value on it of between $26-29 billion. The figures have been presented to the Ukrainian government before a decision on whether Russia’s Gazprom is allowed to take over the network.
Ukraine is considering a deal which would see the country get
cut price gas from Russia in exchange for the pipeline reports
Kommerstant Ukraine newspaper.
The newspaper says the figures come from a source within the
Ukraine Energy Ministry, but they have not been confirmed
officially, nor have advisers Baker Tilly who say the information
is confidential.
Several companies have calculated the value of the Ukrainian gas
transportation system in recent years. In 2007 Ukraine’s the pipe
network was valued at $24.8 billion. Two years later in 2009
brokerage Uvekon calculated the value at between $9.9 billion and
$16 billion, but this didn’t include the vast underground gas
storage facilities.
The new estimates, according to the Ukrainian newspaper, take
such facilities into account.
Earlier this year there already have been reports in the
Ukrainian media suggesting the value of the country’s gas
transportation system was between $20 billion and $26 billion.
Reports also referred to Baker Tilly.
New estimates of the gas pipeline network started to emerge in
the media after Ukrainian authorities resumed talks over
transferring Ukraine’s gas pipelines to Gazprom in exchange for
slashing prices of imported gas and guarantees of safe transit.
Earlier this week reports said the Ukrainian authorities are
ready to let Russia control the main gas pipeline, while the
Ukrainian East European fuel and energy company (Vetek) will
oversee local gas distribution, according to a Kommersant
source.
Current Ukrainian legislation does not allow the pipe network to
be leased or sold.
Forbes-Ukraine has reported that Russia considers the fair value
for the Ukrainian gas transportation system at between $15
billion and $17 billion.
The gas transportation web of Ukraine spans 37,600 kilometers of
trunk pipelines delivering Russian gas to Europe. In recent years
Gazprom has been trying to diversify transit routes, increasing
exports through Belarus and via the Nord Stream route running
through the Baltic Sea. However, the Ukrainian gas transportation
system remains the main channel for Russian gas supplies to
Europe.
This article originally appeared on: RT