Ukraine Interested in Iran Energy Transit to Europe

Ukraine Interested in Iran Energy Transit to Europe
Ukraine Interested in Iran Energy Transit to Europe

Ukraine is interested in carrying Iran’s oil and gas to eastern European states, Oil Minister Bijan Namdar Zanganeh said, stressing that crude supplies to Ukraine can promote bilateral energy ties.

After talks with the Ukrainian Minister of Energy and Coal Industry, Igor Nasalyk, in Tehran, Zanganeh said negotiations were held regarding Ukraine’s offer to deliver Iranian oil and gas to Europe via its pipelines, IRNA reported. Pointing to Ukraine’s low oil refining capacity, Zanganeh said the country meets its demand for oil byproducts mainly through imports.

Zanganeh pointed to Ukraine’s extensive energy transit network, but stressed that need for more talks to check whether or not transferring Iran’s oil and gas to other Europe, namely Czech Republic and Slovakia, is technically and economically viable.

Underscoring Ukraine’s access to modern knowledge to manufacture oil and gas rotating machinery, he said that Iran’s MAPNA Group—a conglomerate of major engineering and construction companies—has close technical ties with Ukrainian companies making gas turbines and compressors.

Ukrain’s Vice Prime Minister Hennadii Zubko discussed financing Iranian energy projects through Ukrainian banks in a visit to Tehran in March, but Zanganeh said there was no new development since then due to “international problems.”

Zanganeh noted that a large number of oil projects were ready to be funded and Ukrainian enterprises could also take advantage of the opportunity. According to the oil minister, Ukrainian companies’ activities in Iran date back to a long time ago, particularly in the gas sector.

Stressing on expanding bilateral ties in producing cutting-edge oil equipment, he believes that the two sides can embark on implementing joint ventures in other energy sectors.

  Gas Storage

Touching on advanced knowhow of Ukrainian firms in establishing gas storage facilities, Amir Hossein Zamaninia, Iran’s deputy oil minister for international and commercial affairs, said Kiev is eager to cooperate with Iran’s private sector to help store gas

“Technical negotiations are on the agenda and plans call for the cooperation of Iran’s private sector with a consortium of European companies to store natural gas in Iran,” he said.

“Ukraine is interested in diversification its oil imports. In addition, Iran has plans to diversify its oil and oil product exports. Thus, the possibility of refining Iranian oil in Ukraine, storing crude in that country and diversifying supplies to the European Union is also on the agenda,” Zamaninia said.