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Deputy Energy Minister of Ukraine: â€œLeading position of Azerbaijan in Caucasus undeniableâ€ â€“ EXCLUSIVE

Deputy Energy Minister of Ukraine: â€œLeading position of Azerbaijan in Caucasus undeniableâ€ â€“ <font color=red>EXCLUSIVE </font>

12 September 2008 10:05 (UTC +04:00)

-Does your high post in Ukraine cause to positive changes in energy sector and relations between the two countries?

I was appointed to this post six months ago. Though my appointment was welcomed with great pleasure in two countries, there were those, who envy for this. Though we did not achieve any success during past period, negotiations are conducted to realize several mutual projects and there are future prospects.

-Why has Ukrainian Prime Minister Yulia Timoshenko failed to visit Azerbaijan by now? What is your opinion about political confrontation in Ukraine?

I hope that this visit will be realized. Prolonging of the visit is linked with political processes in Ukraine. Ukraine is on the way to democracy and reforms. It is not easy to step on this way. Of course, there will be pressures and impediment, but Ukrainians have chosen the way to integrate into Europe. This issue is main reason of all political developments in Ukraine.

-Which side do you support?

I support Ukrainians and I am together with them forever. Methinks, choice of people will exceed all political confrontation and Ukrainians will win at least.

-What is your attitude towards opposition? Do you know each other with Viktor Yanukovych?

I have no acquaintance with Viktor Yanukovych. I do not stand in the position of enemy towards opposition in Ukraine. Although I do not agree to position of opposition, which collapsed all successes of the Government, there are those among them, who love Ukraine truly. Irrespective of political position, I respect for all people, who work in favor of Ukraine and love it. I have stated several times that there are those among government representatives, who often change their position and serve to other interests. All of these reasons impede joint activity of Ukrainian Government.

-Why has Baku-Odessa-Brody oil pipeline not commissioned by now?

Very big forces resist to the exploitation of this pipeline, but I have no doubt that the pipeline will start to operate before the New Year. We intend to sign agreement between Ukrnaft and State Oil Company of Azerbaijan Republic until November. We have to inform Russian Transneft until November 1 that Odessa-Brodi pipeline will operate not by reverse, but obverse method. Russian oil is transported from Odessa to Brodi currently and we intend to transport the oil from Odessa to Brodi as it is considered in the project.

- How is this pipeline profitable for Ukraine generally?

-Today situation artificially created in the Ukraineâ€™s home market makes local oil refineries unprofitable. It is useful to bring petrol, gasoline and other final oil products to the country than crude oil. It was created artificially, but it is fact that Ukrainian refineries stopped the process. Ukraine needs in 12 million tons of oil products a year. 4 million tons are produced in Ukraine, but 8 million tons are exported from other countries, particularly from Russia. The main goal of Odessa-Brodi pipeline is to dispose of Russian monopoly.

-There are people, who suspiciously approach the Ukrainian plans to purchase Azerbaijani oil and to direct it to Europe via Odessa-Brodi pipeline and then to extend it until Gdansk. Have you signed any document on this issue so far?

-The closest way of Central Asian and Caucasian countries, as well as Russia to Europe via Black Sea passes through the Ukrainian territory and Odessa-Brodi pipeline was also constructed for that. Accroding to the project this pipeline has a capacity of 14 million tons per year. Currently this figure is 8-9 million. The next international energy summit will take place in Baku on November 14 and the pipelineâ€™s technical argumentation will be discussed at the summit. After these discussions the fate of pipelineâ€™s extension until Gdansk will be known. Economic experts and specialists have no doubts over the future of Odessa-Brodi-Gdansk pipeline and transportation of Azerbaijan oil to Europe via this pipeline is expedient.

-Do you believe in construction of Trans-Caspian oil and gas pipelines?

-We are looking forward to realize the Ukraineâ€™s â€œWhite Streamâ€ alongside with these projects. We are mostly interested in this project, because Ukraine is not involved in the Trans-Caspian pipelines. Ukraine intends to transport Azerbaijani and Turkmen gas to Europe via â€œWhite Streamâ€.

-What do you think is it possible to realize these projects while Caspian legal status has not been determined yet?

- It is possible, because these are international-scale economic projects. The main factor is that hegemon countries are involved in the projects.

-Does Ukraine intend to take advantage of Nabucco project?

-Ukraine prefers White Stream to this project. This project is of more importance for Ukraineâ€™s domestic market and gas industry. Ukraine has a powerful underground gasholder. Besides, Ukraine has liquid gas project. Discussions are being held on this project.

-Do you see the ongoing political processes in the Caucasus as danger for economic project?

-Despite death and injuries of civilians and destructions during the tension in the Caucasus, the pipelines were secured, because the US and hegemonic states participate in these economic projects. Opposing to this project, violating security of the pipeline would mean challenge to the world. Of course Russia wants to be in the center of the delivery of Caspianâ€™s oil and gas to Europe. There is no such a centrist power in the White Stream project offered by Ukraine.

-What is the level of economic relations between Ukraine and Russia?

-Of course, there is tension. This tension has influence on all spheres, as well as oil and gas industry. But there are no problems between Ukrainian and Russian people. Political course of the two countries differ and this difference is great and noticeable. I hope the peoples having the same root will reach an understanding.

-Can pressures on Ukraine increase with arrival of winter? Are you ready to prevent social problems from turning into political stage, in other words, are you ready for winter?

-Ukraineâ€™s underground gasholders are being filled in connection with preparation for winter. We pay 179.5 dollars per 1000 cubic meters of gas. To pay this amount in time means to prevent the problem. On the other hand, Russian gas can not be delivered to Europe without our gasholders. 80 percent of the pipeline delivering Russian gas to Europe passes through Ukraineâ€™s territory. In this respect, Ukraine is a big transit country and Russia pays transit tax. When the price for Russian gas is increased, of course, we will review transit and gas storage taxes.

-What projects do Ukraine and Azerbaijan plan to implement?

-We offer our liquid gas project. At the same time, talks continue on Odessa-Brodi oil pipeline project. Azerbaijanâ€™s leading role in the Caucasus is undeniable. This country historically had been in the center of political-economic projects in the region and it has not changed. Azerbaijan is developing, strengthening from economic and political aspects. It is a fact that Azerbaijan has chosen integration into Europe. I am glad that this fact is not used in the successful political course to irritate others.

-When will Ukraine repay its debt to Azerbaijan?

-Ukraine runs into debt of 5 million 269 thousands USD to Azerbaijan. State Oil Company of Azerbaijan sent diesel fuel to Ukraine in 2000 by order of former president of Azerbaijan Heydar Aliyev at request of former president of Ukraine Leonid Kuchma. Our debt to Azerbaijan was not paid off so far. Now Ukraine is going to buy oil products from Azerbaijan again. Certain political contradictions in the Ukrainian government prevent pay off a debt. I hope this issue will be solved soon.

-You are known in Azerbaijan as an organizer of popularization of our culture. What new projects are you planning to carry out in this direction?

-We are planning to issue album of outstanding Azerbaijani singer Sakhavat Mammadov. We issued in 2003 and 2007 albums of Mugams and songs performed by Sakhavat. We are planning to organize large event in Baku dedicated to Sakhavat Mammadovâ€™s 55th anniversary. We met with the Minister of Culture and Tourism Abulfaz Garayev. The minister said his organization was always ready to support Mugam projects. We are looking forward to host Azerbaijani Mugam lovers and foreign visitors at the Sakhavat Mammadovâ€™s memorial event in near future.

-Presidential elections are approaching in Azerbaijan. How is view on this process from Ukraine?

-I am following regularly Azerbaijani press and television and visiting my homeland as far as possible. I see renovation, development and political stability here. Obviously this course will win the elections. I think liberation of Karabakh is just in this. The election is a test for the young Azerbaijani state. Irreproachable solution of this test will accelerate Azerbaijanâ€™s integration into Europe. I hope it will be so.