World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Ukraine Gas Deal a $1.1bn Fake


Ukraine Gas Deal a $1.1bn Fake

Certainly the folks at Gazprom are having a good snicker, reveling in the mockery that has been made of what should have been a landmark Ukraine-Spain gas deal that would have loosened Russia's gas grip on Kiev.

Everyone wondered how Russia would respond to Ukraine's attempt at gas independence. But this is what happens when you mess with Gazprom.

It was a horrible moment for Ukraine last Monday—all the more horrible because the whole event was televised—when the historical $1.1 billion deal it was about to sign with Spain's Gas Natural Fenosa turned out to be fake.

Why was the deal historical? It would have secured $1.1 billion in investment for the construction of Ukraine's first liquid natural gas (LNG) terminal on the Black Sea and a pipeline connecting the country's vast gas network to the terminal.

More to the point, this would enable Ukraine to import by tanker up to 10 billion cubic meters of European gas at a price 20% cheaper than Gazprom. Even more to the point, it would be a major first step toward reducing Ukraine's dependence on Russia.

The deal was that investors had apparently signed agreements through a newly formed consortium for the construction of the $1.1 billion LNG terminal.

Here's how the ill-fated signing ceremony went down:

While Ukrainian Prime Minister Mykola Azarov and Energy Minister Yuriy Boyko were cutting the ribbon on the construction of the terminal in a live televised ceremony, the country's investment chief, Vladislav Kaskiv, was attending the official investment signing ceremony elsewhere, also via live video feed. This is where walls caved in very suddenly.

Signing on behalf of Fenosa was one Jordi Sarda Bonvehi. At the 11th hour, Fenosa let it be known that they have no idea who Bonvehi is and that he certainly does not represent the company in any way. Fenosa apparently had no idea it was signing a landmark agreement with Ukraine.

Kiev was necessarily taken aback, and Bonvehi remained conveniently silent at the signing ceremony once the news broke out.

Of course, what no one knows is how Ukrainian authorities were led to believe—during multiple rounds of negotiations—that Bonvehi was a Fenosa representative.

The story being bandied about by authorities in Kiev is now that Bonvehi was under the impression that Fenosa would sign the deal with Ukraine and that he would be given the authority to sign the deal retroactively.

But Fenosa denies it has ever considered such a deal and continues to deny any relationship at all with Bonvehi.

So where does that leave us? It leaves Ukraine in the lurch. There is no way it can fund this terminal on its own, despite its claims to the contrary. We probably don't have to look much further than Gazprom and the Ukrainian oligarchy to find where this beautifully crafted charade was hatched.

In the meantime, Bonvehi—if such a person of that name even exists—remains elusive. No one knows who he really is or who he really works for.

More than anything, it's an advertisement for due diligence.

Source: http://oilprice.com/Energy/Natural-Gas/Ukraine-Crushed-in-1.1bn-Fake-Gas-Deal.html

By. Jen Alic of Oilprice.com


ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 


UN: ‘Heinous’ Murder Of British Aid Worker By Islamic Militants

A wide view of the Security Council in session (file photo). UN Photo/Paulo Filgueiras More>>

ALSO:

UN: Nuclear Programmes Of DPR Korea, Iran Remain Serious Concern

IAEA Director General Yukiya Amano (left) delivers his introductory statement at the Board of Governors Meeting in Vienna, Austria. Photo: IAEA/Dean Calma More>>

Libya: Closer To Brink Of Protracted Conflict And Strife

Special Representative and head of the UN Support Mission in Libya (UNSMIL) Bernardino Léon. UN Photo/Evan Schneider More>>

Gaza:Renewed Urgency In West Bank

15 September 2014 – In the aftermath of the recent conflict in the Gaza Strip, a fundamental change is needed in the dynamics in the enclave, the United Nations today reported, calling also for renewed urgency in addressing the situation in the ... More>>

UN Agency Food Prices Drop To Four-Year Low

As the result of two consecutive years of good harvests, global cereal inventories are expected to rise to their highest levels in 15 years. Photo: FAO/Danfung Dennis More>>

Pacific.Scoop: Fiji’s Captive 45 UN Peacekeepers Set Free

The United Nations has confirmed the release of all 45 Fijian peacekeepers who had been held for two weeks by Islamist rebels in the Golan Heights on the Israeli-Syrian border, reports Al Jazeera English. More>>

ALSO:

UN: Ozone Layer Is Recovering But Remains Threatened

The Earth's protective ozone layer is well on track to recovery in the next few decades. Photo: UNEP More>>

UN: Despite Price Dip, Uranium Demand, Production On The Rise

Uranium ore is processed into a concentrate known as yellowcake and packed in special, tightly sealed steel drums similar in size to oil barrels. Photo: IAEA More>>

ALSO:

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news