Ukraine, EU cold to Russia's idea to form gas transit consortium

Ukraine, EU cold to Russia's idea to form gas transit consortium Prague  - Ukraine and the European Union Thursday showed little enthusiasm for Russia's idea to form a consortium of Russia, Ukraine and EU partners that would overlook natural gas transit through Ukraine.

Speaking a day before an EU-Russia meeting in Moscow, Ukrainian Foreign Minister Volodymyr Ogryzko and European Commissioner for External Relations Benita Ferrero-Waldner said that it was too early to discuss such plans.

"Let us deliberate on strategic goals technical steps and after that we will come to some conclusions," Ogryzko said, adding that Ukrainian law prevents privatization of the pipeline infrastructure.

Ferrero-Waldner was equally cold to the Russian idea. Speaking after an EU-Ukraine meeting held in Prague that is yet vote on EU's stalled reform blueprint, the Lisbon Treaty, she claimed that such decisions would have to wait for the pact's adoption and ensuing common energy policy.

"Then we can discuss different ideas that are around. But there are many, many other ideas too," she said.

European Commission President Jose Manuel Barroso and Russian Prime Minister Vladimir Putin are planned to meet in Moscow on Friday.

The EU has not punished Ukraine for the recent Russian-Ukrainian gas standoff, which left thousands of Eastern Europeans without enough heating amid subzero temperatures.

The 27-member bloc has continued talks with Ukraine on an association accord, including what Ferrero-Waldner described as a "deep free-trade agreement", and long-term plans to lift visas for Ukrainian citizens travelling to the EU.

The commissioner said that negotiations on the accord could conclude by the end of 2009, as originally planned, if Ukraine progressed with needed reforms. "But, of course, for that they really need to speed up all their efforts," she said.

The EU's executive also hopes to collect funds for upgrading Ukraine's aging gas pipeline network, a project that requires 2.5 billion euros (3.2 billion dollars).

Ferrero-Waldner was cautious to set any financial target for a donor conference, planned to be held in Brussels on March 23, amid an economic crisis. "We would like to get a maximum out of it," she said. (dpa)

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