'No rivalry with Turkey'

Turkey and Ukraine are not rivals but partners in the transit and delivery of energy supplies to Europe, said the Ukrainian ambassador to Ankara.

"There are some so-called experts who think we are in competition with Turkey only because we are both transit routes. That's absolutely nonsense," Sergiy Korsunsky told the Hürriyet Daily News & Economic Review in an interview. "We are partners, not rivals; we both get natural gas from different sources."

He said Ukraine transferred Russian natural gas, or some part of Central Asian supplies, through Russia, whereas Turkey shipped gas from countries such as Azerbaijan, to which Ukraine has no access.

Different orientations
Oil, he said, was a world commodity that could be purchased in any country or transferred by tanker, railway or pipeline but unfortunately this was not the case with natural gas, 90 percent of which is pumped through pipelines.

"Pipelines need huge investments; there are long distances. Turkey is oriented with a market of natural gas sources we are completely indifferent to," said Korsunsky.

"Whatever pipeline passes through Turkish territory in the foreseeable future, it will be just directed to satisfy growing needs of Europe and therefore, we are not competitors at all," he said.

According to the ambassador, Turkey and Ukraine, who both heavily depend on external supplies to meet increasing energy demands, must diversify their sources, a policy that requires strong cooperation with the European Union.

Alongside Moldova, Norway and Georgia, Turkey and Ukraine currently have observer status in the European Energy Community, an international instrument for energy cooperation between the EU and, predominantly, the Balkan countries.

"Ukraine has very recently started formal negotiations to become a party to the treaty. I hope Turkey will join as well," said Korsunsky.

The treaty establishing the European Energy Community ensures that signatory states adopt EU single market regulations on energy. Turkey and Norway have serious reservations of future membership because of difficult regulations that must be enforced to formally join the European energy zone.

"The EU is very eager to let all of us in. It's a matter of negotiations but from my point of view, we have no choice. If we want to be part of the EU one day we have to comply with their regulations and their initiatives," stated Korsunsky.

The multi-national Nabucco project that will carry Caspian gas to Europe is another area of cooperation with the EU. Both Turkey and Ukraine support the flagship project aimed at reducing dependence on Russian energy supplies.

"To build a pipeline like Nabucco is quite a hard task because you have to find sources of gas from other countries rather than Russia. Diversification will lose its sense if you fill Nabucco with Russian gas," said the ambassador.

However, he complained about lack of coherent European policy to diversify energy supplies. "Some European countries are very strong supporters of diversification projects but many of them are completely comfortable with working with the Russian Federation only. That means if you don't have the pool of countries with the strongest support of diversification it is difficult to reach a consensus in the EU and for us to join the European energy area," he said.

Dependence on just one country as a single source is always a bad thing and the best solution is to have two or even three alternative sources, according to Korsunsky.

"This is nothing to do with only Russia. If you depend on Iranian supplies only, it would be the same. It doesn't matter," he said.

Ukraine can supply Nabucco
Turkey's state-owned pipeline company BOTAŞ is one of the partners of the Nabucco consortium. Ukraine, also willing to join the project, last year negotiated to receive gas from the pipeline once it was built. But it was told by the Nabucco consortium that they were not interested in consumers but upstream countries and companies that could bring gas to Nabucco.

"From an economic point of view, this is completely understandable," said Korsunsky. Ukraine is not a formal partner of the Nabucco consortium but wants to contribute to the construction of the pipeline.

"If the (Nabucco) pipeline is going to be built, we can supply pipes or equipment. That was actually our job in the Soviet Union. We hope to participate in the construction phase of the project."