23.07.03

U.S. ambassador calls for use of Odessa-Brody pipeline in European direction

U.S. Ambassador to Ukraine Carlos Pascual has again called for the Odessa-Brody pipeline to be used in the European direction. The ambassador made this statement at a meeting on Saturday with the head of the Odessa administration Sergei Grinevetsky.

In an interview with journalists, Pascual also stressed the need to operate this pipeline under terms that are more attractive to investors. Filling the pipeline with Caspian oil for the European market will open long-term prospects for the Ukrainian economy, the diplomat said.

At meetings with the city and regional administrations he stressed that at the moment oil refineries in the Czech Republic and Germany are interested in the Odessa-Brody pipeline. According to Pascual, transportation of Caspian oil to these companies through the pipeline will be profitable for them, as the time and cost of supplies will be reduced.

The ambassador also considers that in addition to the Odessa-Brody pipeline, use of the Pridneprovsky pipeline is also advantageous for Ukraine, on condition that its capacity is increased.

However, the diplomat stressed that a final decision should be reached after concrete proposals are received on concrete contracts. These contracts have not yet been received, not from Russian companies nor from companies in other countries, he said.

Last Wednesday the government postponed a final decision on the use of the Odessa-Brody pipeline in reverse and decided to invite an independent expert, as was done previously to evaluate the operation of the pipeline in the European direction. On the previous day Ukrainian President Leonid Kuchma announced that the government should reach a decision on the direction to use the pipeline.

Russia is in favor of using the pipeline in reverse. Last Friday in Yalta Russian Prime Minister Mikhail Kasyanov said that an agreement on transit of Russian oil through Ukraine could be signed after the issue of transiting Russian oil through the Odessa-Brody pipeline is resolved.

(Interfax)