The Day’s confidential sources report that Azerbaijan proposed the Ukrainian Cabinet negotiate the route of the “principal Azerbaijani big export oil pipeline” to Europe.
Kyiv seems to have received the message the way a drowning man clutches at a straw. If it works out, the Ukrainian leadership will heave a breath of relief after the shocking Azerbaijani-Turkish-Georgian accord.
According to the stated project, Azerbaijani oil will be pumped to Europe via Georgia, reaching the Turkish seaport of Djeichan. However, the National Security and Defense Council considers this uneconomical, a purely political move. Mainly, the proposed negotiations will be about oil transshipment costs at the southern seaport where an oil terminal is under construction in Ukraine, and transporting the oil using the Odesa-Brody pipeline. The competitiveness of these costs will determine big Caspian oil’s route to Europe. President Kuchma, shortly after the above trilateral agreement was signed, invited his Turkish counterpart to Kyiv and bent a kind ear on Mr. Suleyman Demirel’s soliloquy about what Kyiv ought to contribute to the project of transporting Caspian oil across Turkey. Of course, it was Ukraine’s number one priority to help its rivals! Mr. Kuchma also promised to monitor the implementation of the bilateral agreement on the Djeichan-Samsun oil pipeline system. A good thing to do, except why was it not done earlier? As it is, the project can hardly be expected to become two-way street for Ukraine and its participation will be another favor done one of its rivals.
Experts consider that the only effective oil route to Ukraine should be through Odesa and Brody. Since it will be some time before this project is completed, real costs are hard to assess, which means that oil-producers are not interested at this stage. In other words, this is one of those rare cases when the President’s and the Ukrainian people’s interests coincide. Enough talk about the oil terminal. It has to be built.
Reuters Photo:
Kuchma and Demirel are eternal friends, but each wants his own pipeline







