KIEV — State energy company Naftogaz Ukrainy is keen to gain access to Russian gas production assets as it holds talks about forging closer links with Gazprom, chief executive Evhen Bakulin said Friday.
"We are definitely interested," Bakulin told reporters in Berlin when asked whether Naftogaz would like to obtain gas assets in Russia. "And in Turkmenistan, too."
Prime Minister Vladimir Putin offered to merge Gazprom with Naftogaz at an April 30 meeting with his Ukrainian counterpart, Mykola Azarov. Naftogaz moves about 80 percent of Russia's Europe-bound gas exports via its Soviet-era transportation network, which Moscow has sought to control. Ukraine wants to resume buying gas from Central Asia and is seeking to import the fuel through Russia's pipelines.
"We are working on the market with all companies, all countries," Bakulin said. "We are actively working in Egypt — why should we not work in Russia?" He declined to specify any particular assets.
Naftogaz, which currently pumps about 100 billion cubic meters of gas per year, is seeking to upgrade its pipelines. The system's annual capacity is 142 bcm of gas, and the company wants Russia and the European Union to cooperate on upgrading the pipelines, which may cost as much as $4 billion, Bakulin said.
Ukraine can increase the capacity of the pipeline by 50 bcm without investments, Bakulin said. Naftogaz is now seeking confirmation from both Russia and the EU about the volumes that will be moved through its pipelines.
"One of the priorities for the company and country as a whole is maintaining the volumes of gas transit through Ukraine's system at the pre-crisis level of at least 120 bcm a year, with a further increase, if needed," he said.
Naftogaz plans to boost the volume of gas in storage to at least 22 bcm by the end of this year, from 13 bcm now, Bakulin said. The company will probably produce 20 bcm itself this year, he added.
Speaking on Ukrainian state television Friday, Azarov said Naftogaz might show a "small" profit by the end of this year, after decreasing its budget gap to the current 6 billion hryvnas ($757 million).
Ukraine has focused on relations with Russia since Viktor Yanukovych took office in February and formed a Cabinet in March. Last month in Kiev, Putin suggested forming a joint nuclear energy holding company after Russia agreed to cut gas prices for Ukraine by 30 percent through 2019.
RosUkrEnergo, a gas trader partly owned by billionaire Dmitry Firtash, has demanded a $5.4 billion payment from Naftogaz for seized supplies, RosUkrEnergo spokesman Andrei Knutov said, Kommersant reported Friday.
RosUkrEnergo has sued Naftogaz in Stockholm's court of arbitration, claiming that the company expropriated 11 bcm of gas in the beginning of 2009. Knutov said the court would rule by August, Kommersant reported.
Naftogaz declined to comment, the newspaper said.
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