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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Stagnation in Ukraine while the rest of the world around it is moving

Edward CHOW: When Ukraine becomes a country that others will trust it will receive more assistance
9 October, 2012 - 00:00

In the past few days Ukraine has shown increasing interest to its energy security. Presentation of the research “Ukraine’s Energy Security Challenges” held within the framework of the Forum of the US Ambassador in Kyiv fits positively in such steps. The presentation was held by a senior fellow at the Center for Strategic and International Studies Eward Chow and the US Ambassador to Ukraine John Tefft was the moderator of this event. The Day will publish the text of Chow’s speech in the up-coming issues and for now we would just like to quote one of his statements: “Governments must understand that energy projects are not short-term initiatives. And the desire to receive profit of hundred million as soon as possible is, of course, very positive. However, this will not help us out of the acute economic crisis. Let us hope that the political leadership (of your country) understands that.” Read the interview Mr. Chow gave The Day.

Do you agree that Europe is not doing everything in its power to help Ukraine and Russia find a solution to their gas dispute?

“This question should be answered by Europeans and not an American, like myself. I think that in Ukraine and Europe the situation is about the same. In 2006 and in 2009 your country was in an unpleasant situation when there were certain difficulties with the gas supply to Ukraine. As a result all of the Western Europe rejected Ukraine, even its best friends – Poland, the Czech Republic, and Hungary, because they did not like the way Ukraine acted in critical moments. At first they blamed Russia and later they blamed both Russia and Ukraine. It is not fair. Anyway, that’s the way I see it. If you live in Western Europe and someone tries to change the dynamics of gas supply on a global scale, then you need to look for an alternative. Be it liquefied gas, or gas from Africa, or some other source. For example, the worldwide price of LPG is falling and it is a good time to buy it, especially taking into account the fact, that America is no longer importing it but works on export. For Europe the North Stream also does not look too bad, as well as for you, even though before it seemed to be different. It seems to me that even Ukrainian government at some point thought about joining in the South Stream project. But it does not go through Ukraine – it goes around the country. Ukraine will be a greater help to Europe when it will become a kind of a country that others will be able to trust. In that case, Ukraine will also receive more from Europe. But when it comes to transit, Ukraine is seeking support from Russia. This is not a general consensus in Europe, but many people blame Ukraine for that. The whole situation with the consortium that could be established by Ukraine, Russia, and European companies also contributes to that. When I am asked about it, I say that the most suitable time for it has passed. Since there is stagnation in Ukraine, while the rest of the world is actively moving, this chance [for the establishment of the consortium. – Author] for Ukraine is already lost.”

Ukrainian environmental organizations are not very powerful but they still have certain influence and are currently protesting against the production of the shale gas in Ukraine. Do you think that energy companies that are coming to Ukraine to do business should not consider the “green” activists to be their enemies but, instead, they should turn them into their allies, who monitor the improvement and compliance with technologies?

“To answer this question one should use the research information and facts. We raise this question in the Northern America moving forward from Western Texas to Pennsylvania. People ask more and more often about how we can ensure the safety of the environment with the help of the latest technology. This largely depends on the industry that improves technology and must, for example, report on the chemical composition of the solution used for hydraulic fracturing during mining. Local governments also make every effort to protect nature, impose certain limits and rules.

“The situation is similar in Poland, which today is a leader in the exploration of shale gas in Europe. There, for example, the question has been raised about who should fund research related to the protection of the environment. There were also questions raised about stopping all kinds of work related to shale gas production in Central and Eastern Europe. But in July I read research works published by some analytical centers, including local, in which Shell and Chevron companies were asked questions on ecology. I believe that local communities have to warn the companies that come to produce shale gas and governments must define certain rules for such companies.”

By Vitalii KNIAZHANSKY, The Day