September 2011, Vol. 238 No. 9


Ukraine Ready To Upgrade Pipeline Network

Ukraine has launched the first stage of a long-planned project to upgrade its pipelines which carry Russian gas to Europe. As the cash-strapped national oil and gas behemoth, Naftohaz Ukrainy, has no money for an upgrade costing billions of dollars, Ukraine will rely on assistance from the end consumer, the European Union, while the supplier, Russia, remains an onlooker – at least for the time being. In order to qualify for European assistance, Ukraine will have to meet the EU condition to start restructuring Naftohaz. If this occurs, it will be difficult for Moscow to take control over Naftohaz’s pipelines. A ceremony was held in July to launch the first stage of a

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