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Russia, EU team up to stave off gas wars
Russia and the European Union have signed a memorandum on a mechanism of early warning in the energy sector. The document was inked today by Industry and Energy Minister Sergei Shmatko and European Energy Commissioner Andris Piebalgs in Moscow.

The memorandum sets out joint measures to be taken to deal with actual or threatened emergencies in the energy sphere.

Meanwhile, Piebalgs was cited by the Mayak radio station today as saying that the European Union and Russia did not anticipate a conflict with Ukraine over gas supplies similar to that seen last year.

Furthermore, Shmatko announced after the meeting that a new intergovernmental agreement between Russia and Ukraine would provide for Russia's participation in upgrading Ukraine’s gas transport system. In his words, Ukrainian and Russian delegates have been negotiating a possible expansion of the existing agreements and amendments and additions to the already signed intergovernmental deal. Technically, Ukraine’s gas transport system is in good condition, Shmatko added.

As reported earlier, Ukraine’s government approved the concept for developing and upgrading its gas transport system for 2009-2015, which will cost $2.57bn to implement, on October 21. The program will be financed by various sources, spanning Naftogaz of Ukraine’s money and loans.

Ukraine, the EU and international financial organizations signed a joint declaration on upgrading Ukraine’s gas transportation system back on March 23, 2009. Ukraine’s Fuel and Energy Ministry and Naftogaz of Ukraine intend to draw up a feasibility study and a revised cost estimate for the project by the end of the year. Initially, Ukraine neglected to include Russia, but the European Union and the nation’s government later publicly invited Russia to join.

Against this background, more statements came from EU representatives with regard to the gas issue. Slovakia’s Prime Minister Robert Fico, for one, told his Russian counterpart Vladimir Putin that his country had supported Russia at all stages of the “gas war” with Ukraine. He also stated that Slovakia valued its relations with Russia greatly, and that a mutually rewarding cooperation agreement between Russia and the EU was forthcoming.

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