Alexey Miller's column

On potential establishment of a joint venture by Gazprom and NAK Naftogaz Ukrainy

“At the first stage a joint venture may be set up on a parity basis between the companies – 50 by 50 per cent. At the moment, it is necessary to outline the list of assets that can be contributed to the JV by each party.”

On the track record of Klaus-Ewald Holst as Executive Board Chairman of Verbundnetz Gas AG

“Verbundnetz Gas attained considerable success under your chairmanship, reinforced its position in Germany and entered new untapped markets. At the same time, the business partnership and friendship ties grew stronger between our companies. Thank you for the years of fruitful cooperation, during which we achieved much and laid a cornerstone for the future joint victories.”

On merging Gazprom and NAK Naftogaz Ukrainy

“On April 30 Vladimir Putin, Prime Minister of the Russian Federation made a proposal to the Ukrainian party in Sochi that Gazprom and NAK Naftogaz Ukrainy should merge. Today this proposal has been discussed in detail.

The idea of merging Gazprom and Naftogaz Ukrainy is absolutely pragmatic. It is stipulated by the common development history of the gas industry in our countries, in particular – a single gas transmission complex dating back to the USSR. Therefore, it is natural that the Ukrainian gas transmission system (GTS) upgrade should be closely linked to Russia’s Unified Gas Supply System development.

The GTS was initially set up for the purpose of Russian gas transmission to Europe. As you know, the pipe is a valuable asset in case it is filled with gas.

However, the merger proposal is not related to the idea of creating a trilateral gas transmission consortium embracing Russia, Ukraine and European companies. This proposal is different and more global, it is of a larger scale.

I am sure that the merger of the two companies will become an important step towards the European energy security enhancement and diversification of the routes for Russian gas supply to Europe. Therefore, our plans to construct the South Stream are intact. It is planned that until December 31, 2015 considerable gas transmission capacities will be created for Russian gas delivery via a new export corridor.”