Economy changing Azeri-Ukrainian oil talks

BAKU, Azerbaijan, March 30 (UPI) -- The global economic recession and declining energy prices changed the dynamics of oil talks between Azerbaijan and Ukraine, officials said.

Boris Klimchuk, the Ukrainian envoy to Azerbaijan, said that while talks continued for the construction of an oil refinery and other developments, the current economic climate was a game-changer, the Azerbaijan Business Center reports.

"There's a big difference between negotiating with the price of $130 per barrel and $40-50 per barrel," he said. "At the same time, we continue commercial talks for construction of oil refineries, but those are still closed-type."

The Odessa-Brody pipeline through Ukraine provides the best route for Caspian oil reserves to Ukrainian refineries. Ukrainian officials earlier this month had touted the economic prospects of the pipeline.

Ukraine serves as a regional energy hub, though several officials had questioned that role following a January row with Russia that disrupted gas supplies to Europe for weeks.