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3/2/14

EU's Oettinger Offers Aid to Help Fix Ukraine Gas Network

The European Union could extend financial aid to Ukraine to overhaul its gas pipeline network, the bloc's Energy Commissioner Guenther Oettinger said.

Ukraine is an important transit pipeline route for Russian natural gas supplies to Europe and current political tensions there follow the government's decision to spurn a pact with the EU in favor of closer ties with Russia.

"We are prepared to help with the overhaul of the gas pipeline network of Ukraine," Oettinger said. "This involves a high triple-digit million euros sum."

Oettinger's comments, confirmed by the European Commission on Friday, were made in an interview with German magazine Focus.

Commission spokeswoman Sabine Berger said the executive was "acting as a facilitator for the international financial institutions to provide the necessary loans" to help modernize Ukraine's aging infrastructure.

Ukraine stunned the EU by spurning a trade deal in November and President Viktor Yanukovych's decision to side instead with Russia triggered mass protests, which led to his ouster.

The nation's new rulers have said the country needs at least $35 billion over two years to stave off bankruptcy.

There is also uncertainty over a December deal on gas from Russian exporter Gazprom which slashed prices for Ukraine.

Read more: EU's Oettinger Offers Aid to Help Fix Ukraine Gas Network | The Moscow Times

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