Odesa-Brody: Why Lose Our Chance?

Rapid implementation of the Odesa-Brody pipeline and broad exploitation of our inner resources will become important components of Ukraine’s energy security strategy. This thesis was put forward on October 22 by US Embassy economic officer Michele Dastin van Rign at the New Tendencies of Energy Safety Strategy international conference in Kyiv. She argued that at present Ukraine obtains over 89% of its imported oil from Russia, with 75% of the natural gas also coming from or through Russia. To diminish the dependence on a single energy resources source and increase its internal security, Ukraine should use every opportunity, including strengthening its Euro-Atlantic ties as an alternative. “Ukraine should be a transit state for supplying energy carriers to Europe,” Ms. Dastin van Rign said, pointing to large stores of light Caspian oil. In her view, Germany and the Czech Republic have already shown their interest in importing 7 million tons of Caspian oil through the Odesa-Brody pipeline, which will require no additional investment. The demand for Caspian oil from Western European and Polish refineries can secure another 4 million tons. Considering the existing problem of bringing tankers through the Bosporus, the Odesa-Brody pipeline’s potential is immense, the expert believes. Taking into account these signals, in her opinion, Ukrainian government should prove to the West the pipeline’s commercial viability and ability to secure energy security for Ukraine as well as other European countries. “You can sign contracts on the European level, including Western standards for openness. The world market has to see that Ukraine is a reliable partner. If Ukraine succeeds in this, Caspian oil will really go to Europe through this pipeline,” Ms. Dastin Van Rign underscored.