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Ukraine to buy Iranian gas

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  • Ukraine to buy Iranian gas

    Agence France Presse -- English
    July 27, 2005 Wednesday 7:33 PM GMT

    Ukraine to buy Iranian gas

    TEHRAN July 27

    Iran has agreed to export up to 30 billion cubic meters (one trillion
    cubic feet) of natural gas to Ukraine per year, a senior Iranian oil
    ministry official told state radio on Wednesday.

    "Ukraine has shown its willingness to purchase 20 to 30 billion cubic
    meters (700 billion to 1 trillion cubic feet) of gas per year from
    Iran for its domestic consumption," Iranian Deputy Oil Minister Hadi
    Nejad-Hosseinian said.

    "Ukraine also agreed to export up to 20 billion cubic meters (700
    billion cubic feet) of our gas to Europe through its own
    installations," according to the memorandum of understanding signed
    last week, he added.

    "Both countries are going to invite the countries on the way of the
    pipeline like Georgia, Armenia and Russia to a conference in Tehran
    in mid-September to talk about a pipeline and how to carry it out,"
    the oil official added.


    He did not elaborate on the deal's financial worth.

    Nejad-Hosseinian said that striking the deal with Ukraine solved
    Iran's problem of selling its gas to Europe through its western
    neighbor, Iraq.

    He added that Turkish involvement in Iranian gas exports to Europe
    was no longer needed.

    "The problem we had with Turkey was that they thought that the only
    way for Iranian gas to reach Europe was through their territories,"
    he said.

    "They said they were not ready to transport Iranian gas export to
    Europe, telling us that they would buy it from us and re-sell it."


    Iran holds 18 percent of the world's proven gas reserves with 28
    trillion cubic meters (980 trillion cubic feet) of natural gas, and
    is second only to Russia.

  • #2
    Turkey, your xxxxy blackmailing attitude is beginning to CO$T you!

    Comment


    • #3
      525-th Newspaper: Export Of Iranian Gas Via Armenia - Step Against
      Ankara And Baku

      PanArmenian News Network
      July 29 2005

      525-TH NEWSPAPER: EXPORT OF IRANIAN GAS VIA ARMENIA - STEP AGAINST
      ANKARA AND BAKU

      29.07.2005 03:23

      /PanARMENIAN.Net/ The memorandum on cooperation signed the other day
      between Iran and Ukraine triggered unequal reaction. Officials in
      Turkey and Armenia claimed the document on the construction on a gas
      pipeline from Iran to Ukraine bears not economic but political
      character, 525-th newspaper reports. The memorandum provides for the
      formation of joint commission for investigating financial and other
      issues referring to the construction. The Turkish and Armenian
      parties showed particular interest in the route. It was supposed that
      specialists from Iran, Ukraine, Georgian and Russian specialists will
      serve on the joint commission. However Armenia also received
      invitation to joint the commission. This fact proves that the gas
      pipeline is likely to lie through Armenia. To note, both Tehran and
      Kyiv considered the route to be most convenient. At the same time
      they did not rule out construction via the Turkish territory. However
      presently the possibility is questioned, since the invitation was
      sent to Armenia but not to Turkey. Moreover, members of the Iranian
      Energy Ministry stated that any accusations advanced by Turkey are
      groundless, since the latter has not showed proper `transparency' and
      purposed mostly political aims. That is why Iran decided to export
      gas via Armenia-Georgia-Ukraine-Eastern Europe route. Turkish press
      rates the decision as political noting that the export of Iranian gas
      through Armenia is a step targeted against Turkey and Azerbaijan.
      While Turkey keeps imposing blockade on Armenia and urges Armenia to
      abandon claims for Karabakh Iran is strengthening relations with
      Armenia. This is caused by some conflict of interest of Iran on one
      hand and Turkey and Azerbaijan on the other hand. Thus, the building
      of the gas pipeline via Armenia can be viewed as support to this
      country and equaling of economic and power balance in the region and
      is a counter-response to the Baku-Tbilisi-Ceyhan oil pipeline. In the
      opinion of experts, this step by Iran can spoil its relations with
      Turkey and Azerbaijan, the newspaper writes.

      Comment


      • #4
        U.S. energy establishment expresses interest in Iran-Armenia pipeline

        YEREVAN, October 12 (RIA Novosti, Gamlet Matevosyan) - U.S. Energy Secretary Samuel W. Bodman said Wednesday that the United States would be interested in contributing to the Iran-Armenia natural gas pipeline project.

        Bodman met with his counterpart Armen Movsisyan in Armenia's capital to discuss the pipelnine, as well as to consider the possibility of holding a U.S.-Armenian energy forum for private companies and financial institutions in order to boost Armenia's energy sector, the Armenian Foreign Ministry reported.

        Movsisyan said Armenia's only nuclear power plant could be shut down only if there were other energy-generating facilities available to replace it. He said Armenia expected the U.S. to help it in ensuring the plant's safety and developing alternative energy sources.

        Comment


        • #5
          Iran-Armenia ties promote stability in Caucasus

          Iran-Armenia ties promote stability in Caucasus

          Monday, October 24, 2005 - ©2005 IranMania.com

          LONDON, October 24 (IranMania) - Iranian Ambassador to Armenia Alireza Haqiqian told the students news agency ISNA that Iran?Armenia relations in the political, economic, cultural, and national spheres are at a satisfactory level and the expansion of these relations would help the two countries promote stability and peace in the Caucasus region.

          ?The satisfying bilateral ties are the result of the efforts of both countries? high-ranking officials and also due to the historical and cultural affinities of the Iranian and Armenian nations,? he noted.

          Haqiqian stated that the Armenian media heavily covered the election of Mahmud Ahmadinejad as Iran?s president last spring due to the public?s interest.

          In addition, many high-ranking Armenian officials congratulated Ahmadinejad on his victory and said the election showed that there is democracy in Iran, he said.

          ?Fortunately, we have been implementing joint economic activities, especially major energy projects, like the ones setting up two lines for transferring electricity and establishing a wind power plant in Armenia,? he noted.

          The Iranian ambassador went on to say that the Iran-Armenia gas pipeline is being constructed by Iranian companies and the project is scheduled to be completed by 2007.

          In conclusion, Haqiqian said that six Iranians charged with drug offenses are currently incarcerated in Armenian prisons, and the Iranian Embassy is pursuing the legal and judicial issues of their cases.

          Comment


          • #6
            Russian Gas Dispute Puts European Supply At Risk

            RUSSIAN GAS DISPUTE PUTS EUROPEAN SUPPLY AT RISK
            By Julian Evans in Moscow and Roger Boyes in Berlin

            The Times
            November 30, 2005

            VITAL gas supplies to Western Europe are under threat because of an
            acrimonious dispute between Russia and Ukraine over that country's
            recent embrace of the European Union and Nato.

            The row is focusing attention on the West's growing dependence on
            Russian gas, and raising fears that the Kremlin has started to use its
            status as a leading energy producer as an instrument of foreign policy.

            Russia wants to triple the price of the gas it sells to Ukraine,
            starting from January 1, in part because the country has shifted its
            allegiance to the West.

            Ukraine is resisting. If the two fail to resolve their dispute in the
            next month, Ukraine could halt the flow of Russian gas to Western
            Europe, nearly 80 per cent of which goes through a pipeline that
            crosses the country. Both nations openly acknowledge the threat to
            Western Europe's supplies.

            A spokesman for Naftogaz Ukraine, the state energy company, said that
            Russia would have to carry the blame for any delay in gas supplies
            to Western Europe.

            Sergei Kuprianov, a director at Gazprom, the main Russian gas producer,
            countered: "Ukraine is blackmailing us by using the issue of European
            gas supplies . . . The security of these European supplies is a matter
            of the highest importance for us, and should not be used for haggling."

            A break in gas supplies from Russia could have a devastating effect
            on Western Europe.

            Russia, which is the world's largest natural gas producer, supplies
            roughly a quarter of the EU's gas. It is the sole gas supplier to
            Estonia, Latvia, Lithuania and Slovakia. It also supplies about 80
            per cent of the gas to Hungary and Poland and more than 70 per cent to
            the Czech Republic. That gives Moscow considerable muscle in countries
            that once belonged to its sphere of influence.

            But Russia has also been making increasing inroads into traditional
            Western markets: about 40 per cent of German gas and 25 per cent of
            French gas comes from the Siberian gasfields.

            Britain is less dependent than most EU states, but is nonetheless
            due to double its purchases of Russian gas from five billion cubic
            metres next year to ten billion in 2010. The dispute between Ukraine
            and Russia erupted this month when the Kremlin announced that Russia
            would no longer sell gas to former satellite states such as Ukraine,
            Georgia and Moldova at subsidised rates.

            It has traditionally used subsidised fuel exports as a means of
            keeping those states within its sphere of influence. However, the
            Orange Revolution in Ukraine, which pushed it closer towards the EU
            and Nato, prompted a rethink in the offices of Gazprom.

            Russian relations with Ukraine, Georgia and Moldova have worsened
            in the past two years as they have moved towards the EU and Nato,
            and called for the withdrawal of Russian military forces.

            "The era of Russia subsidising its neighbours has gone on too long,"
            Mr Kuprianov said. "These countries' economies are now strong enough to
            pay normal market prices. Why should we subsidise them, whether they
            want to join Nato or not?" Gas prices for the more Russia-friendly
            Belarus and Armenia were under discussion, he said.

            Ukraine faces the steepest price increase, of 300 per cent. But both
            Moldova and Georgia will have to pay at least double the present rates
            for their Russian gas imports. This will particularly hurt Moldova,
            which is one of the poorest countries in Europe.

            The governments of these countries are convinced that the price rise is
            an act of revenge. President Voronin of Moldova said: "We are ready to
            live in the cold, to freeze without Russian gas, but we won't give in."

            A European energy crisis could still be averted. Adam Landes, an
            energy analyst at Renaissance Capital, said that a deal was still
            possible. "The transit role that Ukraine plays is so vital to Europe
            that I believe an eleventh-hour compromise will be reached."

            Interrupting Russian gas supplies to Ukraine would be almost equally
            disastrous for both the Russian and Ukrainian economies. Russia
            depends on its substantial hard currency earnings from gas.

            The dispute underlines the need for Russia to find alternate routes
            for its imports to Western Europe, which are expected to grow by one
            third in the next decade. It is about to begin construction of an
            1,189km (739 mile) pipeline through the Baltic Sea to Germany.

            TURNING UP THE HEAT

            In 2003, nearly a quarter of the EU's gas consumption depended on
            Russian imports This figure rises to 74 per cent for new member
            states and 74 per cent for Ukraine and Belarus Lithuania, Latvia,
            Estonia and Slovakia are completely dependent on Russian gas Russia
            has the world's largest gas reserves and is the largest producer
            and exporter of gas Gazprom is the largest gas producing company in
            the world with a share in the world gas production of about 20 per
            cent. It controls almost 60 per cent of the Russian gas reserves and
            produces about 90 per cent of Russian gas The company is responsible
            for 8 per cent of Russia's Gross Domestic Product (GDP) and supplies
            gas to generate about 50 per cent of domestic electricity Source:
            Gazprom, Centre for Eastern Studies.

            Comment


            • #7
              Russian Gas Monopoly To Hike Prices For Former Soviet Republics

              RUSSIAN GAS MONOPOLY TO HIKE PRICES FOR FORMER SOVIET REPUBLICS
              Alex Nicholson

              AP Worldstream
              Nov 29, 2005

              Natural gas monopoly Gazprom announced Tuesday that it would raise the
              cost of gas it supplies to former Soviet republics to near-European
              prices as of next year, a move some countries have criticized as
              politically motivated.

              "Of course, when Germany bought gas for US$80 dollars (A68), US$50
              dollars (A43) for gas to Ukraine seemed appropriate," deputy Gazprom
              board chairman Alexander Ryazanov said in televised comments. "But when
              the price rose to US$200 dollars (A171), then of course US$50 dollars
              (A43) is a very small price and doesn't correspond to our real costs."

              Russia _ whose role as the region's main energy provider gives it
              considerable clout _ has hinted it is trying to devise a new model
              for dealing with ex-Soviet republics following mass upheavals that
              swept new pro-Western leaders into power in some countries.

              Last week, Georgian Prime Minister Zurab Nogaideli lamented Russia's
              intention to raise gas prices from their current level of US$60 (A51)
              per thousand cubic meters to US$110 (A94). "We understand that it is
              a political decision," Nogaideli said.

              Speaking at a conference organized by Gazprom, which supplies a
              quarter of Europe's gas, Ryazanov said that rates for the Baltic
              countries would rise to between US$120-25 (A102-107) per thousand
              cubic meters. Georgia and Armenia would pay US$110 (A94) while Moldova
              would see prices rise to US$150-160 (A128-137

              Georgia, Moldova and Ukraine all have leaders that have worked to
              distance their countries from Russia.

              "This is not politics, it is economics," Ryazanov was quoted by the
              ITAR-Tass agency as saying.

              Separately, Ryazanov said that a long-awaited decision on the
              consortium of foreign partners for Gazprom's Shtokman liquefied gas
              project would be unveiled in March 2006. Located in the Barents sea,
              the Shtokman field is thought to hold some 3 trillion cubic meters
              of gas.

              Valery Yazov, chairman of the lower house of parliament's Energy,
              Transport and Communications committee said lawmakers planned to pass
              amendments lifting restrictions on the ownership of Gazprom shares
              by foreigners in their second and third readings on Dec. 9. Currently
              foreigners are only allowed to hold the small amount of Gazprom shares
              that trade at a premium on western markets.

              "I hope that the new law will be on the president's desk by the end
              of the year," Yazov was quoted by the Interfax agency as saying.

              Comment


              • #8
                Gazprom Embroiled In Price Dispute With Former Soviet States

                GAZPROM EMBROILED IN PRICE DISPUTE WITH FORMER SOVIET STATES

                Datamonitor NewsWire
                November 30, 2005

                A diplomatic row is brewing between Russian gas major Gazprom and
                authorities in the neighboring former Soviet states that rely on
                its gas imports. Ukranian officials are resisting Gazprom's efforts
                to impose price increases in a spat that has already led to the
                cancellation of a high-level diplomatic meeting between the two
                countries.

                Gazprom has threatened to raise imported gas prices further still
                if Ukraine does not accept its current proposed price of $160 per
                1,000 cubic meters, to be implemented from as soon as next year. This
                represents almost a three fold increase on the current price.

                Gazprom pays Ukraine in kind with a percentage volume of the gas it
                ships thought the country en route to western Europe. Gazprom argues
                that, as the international gas price has soared, so it is only right
                that Ukraine be asked to pay more for its share.

                The Russians have warned that, as a consequence of the impasse, export
                supplies to western Europe could be disrupted. Gazprom currently
                subsidizes supplies to former Soviet states but it is keen to end
                this practice.

                "Of course, when Germany bought gas for $80, $50 for gas to Ukraine
                seemed appropriate," Gazprom's deputy chief executive Alexander
                Ryazanov said in televised comments. "But when the price rose to $200,
                then of course $50 is a very small price and doesn't correspond to
                our real costs."

                However some observers have suggested that the dispute - which also
                involves a number of other countries including Lithuania, Armenia
                and Moldova - is essentially political. Gazprom's actions are seen
                by critics as a 'punishment' for the pro-western agendas that many
                former Soviet bloc members have adopted over recent years.

                Gazprom flatly denies the charge: "This is not politics, Gazprom isn't
                under pressure from the government," Mr Ryazanov told reporters. "This
                is simple economics."

                Comment


                • #9
                  Russian Gas Dispute Puts European Supply At Risk

                  RUSSIAN GAS DISPUTE PUTS EUROPEAN SUPPLY AT RISK
                  by Julian Evans in Moscow and Roger Boyes in Berlin

                  The Times (London)
                  November 30, 2005, Wednesday

                  VITAL gas supplies to Western Europe are under threat because of an
                  acrimonious dispute between Russia and Ukraine over that country's
                  recent embrace of the European Union and Nato.

                  The row is focusing attention on the West's growing dependence on
                  Russian gas, and raising fears that the Kremlin has started to use its
                  status as a leading energy producer as an instrument of foreign policy.

                  Russia wants to triple the price of the gas it sells to Ukraine,
                  starting from January 1, in part because the country has shifted its
                  allegiance to the West.

                  Ukraine is resisting. If the two fail to resolve their dispute in the
                  next month, Ukraine could halt the flow of Russian gas to Western
                  Europe, nearly 80 per cent of which goes through a pipeline that
                  crosses the country. Both nations openly acknowledge the threat to
                  Western Europe's supplies.

                  A spokesman for Naftogaz Ukraine, the state energy company, said that
                  Russia would have to carry the blame for any delay in gas supplies
                  to Western Europe.

                  Sergei Kuprianov, a director at Gazprom, the main Russian gas producer,
                  countered: "Ukraine is blackmailing us by using the issue of European
                  gas supplies...The security of these European supplies is a matter
                  of the highest importance for us, and should not be used for haggling."

                  A break in gas supplies from Russia could have a devastating effect
                  on Western Europe.

                  Russia, which is the world's largest natural gas producer, supplies
                  roughly a quarter of the EU's gas. It is the sole gas supplier to
                  Estonia, Latvia, Lithuania and Slovakia. It also supplies about 80
                  per cent of the gas to Hungary and Poland and more than 70 per cent to
                  the Czech Republic. That gives Moscow considerable muscle in countries
                  that once belonged to its sphere of influence.

                  But Russia has also been making increasing inroads into traditional
                  Western markets: about 40 per cent of German gas and 25 per cent of
                  French gas comes from the Siberian gasfields.

                  Britain is less dependent than most EU states, but is nonetheless
                  due to double its purchases of Russian gas from five billion cubic
                  metres next year to ten billion in 2010. The dispute between Ukraine
                  and Russia erupted this month when the Kremlin announced that Russia
                  would no longer sell gas to former satellite states such as Ukraine,
                  Georgia and Moldova at subsidised rates.

                  It has traditionally used subsidised fuel exports as a means of
                  keeping those states within its sphere of influence. However, the
                  Orange Revolution in Ukraine, which pushed it closer towards the EU
                  and Nato, prompted a rethink in the offices of Gazprom.

                  Russian relations with Ukraine, Georgia and Moldova have worsened
                  in the past two years as they have moved towards the EU and Nato,
                  and called for the withdrawal of Russian military forces.

                  "The era of Russia subsidising its neighbours has gone on too long,"
                  Mr Kuprianov said. "These countries' economies are now strong enough to
                  pay normal market prices. Why should we subsidise them, whether they
                  want to join Nato or not?" Gas prices for the more Russia-friendly
                  Belarus and Armenia were under discussion, he said.

                  Ukraine faces the steepest price increase, of 300 per cent. But both
                  Moldova and Georgia will have to pay at least double the present rates
                  for their Russian gas imports. This will particularly hurt Moldova,
                  which is one of the poorest countries in Europe.

                  The governments of these countries are convinced that the price rise is
                  an act of revenge. President Voronin of Moldova said: "We are ready to
                  live in the cold, to freeze without Russian gas, but we won't give in."

                  A European energy crisis could still be averted. Adam Landes, an
                  energy analyst at Renaissance Capital, said that a deal was still
                  possible. "The transit role that Ukraine plays is so vital to Europe
                  that I believe an eleventh-hour compromise will be reached."

                  Interrupting Russian gas supplies to Ukraine would be almost equally
                  disastrous for both the Russian and Ukrainian economies. Russia
                  depends on its substantial hard currency earnings from gas.

                  The dispute underlines the need for Russia to find alternate routes
                  for its imports to Western Europe, which are expected to grow by one
                  third in the next decade. It is about to begin construction of an
                  1,189km (739 mile) pipeline through the Baltic Sea to Germany.

                  TURNING UP THE HEAT:

                  * In 2003 nearly a quarter of the EU's gas consumption depended on
                  Russian imports

                  * This figure rises to 74 per cent for new member states and 74 per
                  cent for Ukraine and Belarus

                  * Lithuania, Latvia, Estonia and Slovakia are completely dependent
                  on Russian gas Russia has the world's largest gas reserves and is
                  the largest producer and exporter of gas

                  * Gazprom is the largest gas -producing company in the world with a
                  share in the world gas production of about 20 per cent. It controls
                  almost 60 per cent of the Russian gas reserves and produces about 90
                  per cent of Russian gas

                  * The company is responsible for 8 per cent of Russia's gross domestic
                  product (GDP) and supplies gas to generate about 50 per cent of
                  domestic electricity

                  * Source: Gazprom, Centre for Eastern Studies

                  Comment


                  • #10
                    No Official Word On Russian Gas Price Hike - Armenian Gas Company

                    NO OFFICIAL WORD ON RUSSIAN GAS PRICE HIKE - ARMENIAN GAS COMPANY

                    RIA Novosti, Russia
                    Dec. 1, 2005

                    YEREVAN, December 1 (RIA Novosti, Gamlet Matevosyan) - The Armenian
                    Gas Company (ArmRosGazprom) has not received any official information
                    on the increase of prices for Russian natural gas supplies to the
                    republic, the company's press secretary said Thursday.

                    Shushan Sardaryan spoke in reference to a statement by Gazprom Deputy
                    Board Chairman Alexander Ryazanov that the Russian gas monopoly would
                    start supplying natural gas to Armenia from 2006 at a new rate of
                    $110 per 1,000 cu m. Currently Armenia pays $56 per 1,000 cu m.

                    Speaking at the Russian Gas 2005 investment forum Tuesday, Ryazanov
                    said that beginning next year the gas price would be $110 per 1,000
                    cu m for Armenia and Georgia and the price hike would also extend to
                    Baltic countries, Moldova and Ukraine.

                    Gazprom has been selling natural gas to former Soviet republics at
                    prices below market rates since 1991.

                    ArmRosGazprom has the monopoly on supplying and distributing natural
                    gas on the Armenian market. The Armenian Ministry of Energy holds
                    a 45% stake in the company, Gazprom - 45%, and Russian oil and gas
                    company Itera - 10%.

                    Comment

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